Minister calls upon cooperative banks to focus on creating jobs, entrepreneurship

Parliamentary Affairs Minister urges cooperative banks to focus on job creation and entrepreneurship, criticizing limited scope and traditional mindset.

Taking exception to cooperative banks working with limited scope, Parliamentary Affairs and Tourism Minister H.K. Patil has called upon such banks to focus on job creation and promoting entrepreneurship among people.

“Cooperative banks offer loans to purchase cars, residential plots, houses and personal loans for marriage. But they don’t offer loans for opening a small-scale industry. As long as the cooperative banks don’t change this approach, they cannot serve their purpose. Their service will not amount to social service. Cooperative banks must focus on empowering the economically weaker sections by offering financial assistance to their entrepreneurship,” he said at the golden jubilee celebrations of the Gandhi Gunj Cooperative Society at Sindol Kalyan Mantap in Bidar on Sunday.

Stressing on the importance of employment generation to strengthen livelihood and economy at the grassroots level, Mr. Patil said that job creation will also provide solid foundation for a peaceful society.

“The banks must focus on job creation. Decent jobs for the working population will lead to a peaceful society. Cooperative banks must make resolutions at each meeting to offer loans to job creators. The level of contentment you get in giving jobs to the working hands is unmatched. The street vendors, vegetable and fruit sellers and petty shop owners still borrow from private financers at over 25% interest,” he said.

“If you can identify such people in need of financial assistance and offer them loan with reasonable interest, it will be a great service. Taking resolute steps towards employment generation will give meaning to this golden jubilee,” Mr. Patil said.

Advising banks to come out of their traditional mindset, Mr. Patil asked them not to demand security for every loan that they offer to the poor.

“You cannot expand your business if you remain in the ambit of traditional outlook. If you continue to demand security for every loan you disburse or if you deny loans for the establishment of small-scale industries or businesses, you cannot grow. Cooperative banks are meant for the poor and not for the rich. You must identify the people from the downtrodden sections that require financial assistance to establish a small trade, business or industry to make a decent living and help them out,” he said.