Team Herald
PANJIM: The Goa State Co-operative Bank Ltd has undergone reorganization with an amendment to Multi-State Cooperative Societies Act that separates union territory of Daman and Diu.
A special general body meeting held on Sunday accepted the report prepared by a NABARD-appointed agency seeking to bifurcate Daman and Diu based on the Supreme Court ruling in 2003 and Reserve Bank of India guidelines. The report was placed before the general body after a two-month long study.
“The Act is now converted to Goa State Cooperative Societies Act… Our branches in the union territory will be detached from Goa. Those can be roped-in by Daman and Diu when it constitutes its own State Co-operative Societies Act,” Chairman Ulhas Phal Dessai told Herald.
The development that comes ahead of the RBI deadline on December 31, 2015 will now be communicated to the Central Registrar and RBI.
With the changes, the apex financing agency in the cooperative sectors will focus at offering financial assistance to business sectors and individuals-in-need within the State of Goa.
The amendment will also in-turn benefit the Bank as it is now eligible for NABARD’s refinance policy. Phal Dessai disclosed they were hitherto ineligible to get the benefit of the refinance scheme as a result of which the Bank endured an estimated loss of Rs 41 crore in the last five years.
The Chairman blamed his predecessor of the massive loss, which he said could have been avoided had the amendment was carried out. The separation of Daman and Diu was needed, an official said, soon after the State attained Statehood.
