Published On : Sun, Jun 14th, 2015

NDCC Bank’s functioning is obstructed due NABARD failing to submit audit

Nagpur: Nagpur District Central Cooperative (NDCC) Bank’s smooth functioning is obstructed as the NABARD has failed to submit its audit report of NDCCB to the State Government and the Reserve Bank of India (RBI) in time. As a result thousands of farmers of the district as well as depositors will be required to wait for transactions with the NDCC Bank, for time uncertain.

In order to continue the transactions smoothly, the NDCCB had borrowed a fund of Rs 131 crore from the Centre and the State Government before March 31, 2015. It needed Rs 22.50 crore more to obtain permission of RBI. This sum of money too was approved by the State Government. But meanwhile the NABARD was directed to conduct auditing of the bank (NDCCB) and report whether it needed that much of fund. This direction to NABARD was given a month ago but the NABARD has no time to carry out audit and submit its report.

The NABARD was expected to submit its audit report of NDCCB by May 11, 2015. It was only then the NDCCB would have started preparation for distribution of loans to farmers for their kharif-crops, this season. Besides this, the NDCCB has made correspondence with NABARD for four to five times urging it to complete the audit and submit its report, but NABARD has paid no heed to the issue. The NDCCB is now in a state of fix as the State Government too is not taking up the matter at its level.

It may be noted that if the farmers do not get kharif- crop loans, they would be compelled to approach the Sahukars for loan and once again become trapped/ debt-ridden from Sahukars. Therefore, the NABARD must conduct audit and submit its report as early as possible to save the farmers.

What is more worrying is that NABARD has not yet submitted its audit report as yet; and after submission of report it will take at least two months for RBI to grant permission. This delay will not only affect the farmers but also the depositors, for they will have to wait; one does not know how long. It is informed that Rs 300 crores are distributed per year to farmers by NDCCB as crops-loan. While the season is overhead, and if they spend some money from their own pocket for purchase and sowing of the crops, that amount of money too is not reimbursed to them by the bank.

– Rajeev Ranjan Kushwaha ( rajeev.nagpurtoday@gmail.com )