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National Bank for Agriculture and Rural Development


	Institutional Development Department

	Updates

	Highlights

	PROGRESS MATRIX - States where Act is amended

	PROGRESS MATRIX - States where Act is NOT amended

	State-wise Highlights

	Legal & Institutional Reforms

	Fit and Proper Criteria

	Computerization Process

	Common Accounting System (CAS) & Management Information System (MIS) and Internal Control System for PACS

	DCCB Level Implementing and Monitoring Committee(DLIC)

	DCCB Level Support Teams

	Human Resource Development - Training Modules

	Memorandum of Understanding for STCCS

	NIMC

	Revival Package of GoI for Revival of Short Term Coop. Credit Structure

	State Level Task Force(under8(d) of MoU) for STCCS

	State Level Implementing and Monitoring Committee(SLIC)

	Task Force on Rural Cooperative Credit Institutions

	NER Package

Departments

Cooperative Revival and Reforms

Rural cooperative credit institutions have played a large role in providing institutional credit to the agricultural and rural sectors in the past. Typically, these credit institutions have been part of two distinct structures, commonly known as the short term cooperative credit structure (ST CCS) and the long term cooperative credit structure (LT CCS) in each state. The ST CCS, comprising primary agricultural credit societies (PACS) at the village level, district central cooperative banks (DCCBs) at the intermediate level, and the state cooperative bank (SCB) at the apex level, primarily provides short term crop loans and other working capital loans to farmers and rural artisans, although over the last few years, it has also been providing longer duration loans for investments in the rural sector. The LT CCS, comprising state cooperative agriculture and rural development bank (SCARDB) at the state level and primary (P) CARDBs or branches of SCARDB at the decentralised district or block level, has been providing typically medium and long tem loans for making investments in agriculture, rural industries, and lately housing.

Over the past 10 years, however, not only has the share of the CCS in agricultural credit fallen from 62% in 1992-93 to 34% in 2002-03, its financial health has also seen a downturn. Accumulated losses in the ST CCS have been estimated at almost Rs. 10,000 crore, and those in the LT CCS at about Rs. 4,000 crore.

Various committees had been set up in the past to enquire into the problems faced by the CCS institutions, and to make recommendations for their revival. No concrete action was however taken on these recommendations due to various reasons.

The Government of India (GoI) appointed a Task Force under the Chairmanship of Prof. A Vaidyanathan in 2004 to analyse the problems faced by the CCS institutions and to suggest an action plan for their revival. The draft report of the Task Force on ST CCS was put in the public domain for comments in January 2005, and after considering the responses on the draft report, the finalized Report of Task Force on Revival of Rural Cooperative Credit Institutions (in the ST CCS) was submitted to the GoI in February 2005. The draft report of the Task Force on LT CCS was put in the public domain for comments in January 2006, and after considering the responses on the draft report, the finalized Report of the Task Force on Revival of Rural Cooperative Credit Institutions (in the LT CCS) was submitted to the GoI in August 2006.

During 2005, the GoI had extensive discussions with the state governments on the recommendations of the Task Force on ST CCS, and a consensus was achieved on the Revival Package that could be implemented across the country. This Revival Package for STCCS was communicated to the state governments in January 2006.

A series of meetings were held by GoI during October 2007 to February 2008 to discuss the recommendations of the Task Force on Revival of the Long Term Cooperative Credit Structure (LTCCS). It has been announced in the Union Budget 2008-09 that the Central and State Govts. have agreed upon a Package to implement the Prof. Vaidyanathan Committee report on reviving the Long Term Cooperative Credit Structure (LTCCS).

The Revival Package for STCCS focuses on introducing legal and institutional reforms, which will enable the cooperatives to function as autonomous member centric and member governed institutions. These reforms will enable wider access to financial resources and investment opportunities, remove geographical restrictions in operations as well as mandated affiliations to federal structures, and provide administrative autonomy to cooperatives at all levels. Suitable amendments in the BR Act and certain provisions in the NABARD Act are also contemplated.

In addition to providing resources for covering the accumulated losses in the ST CCS as on 31 March 2004 , the Package also provides for taking cooperatives to a minimum level of CRAR of 7%, and meet the costs of computerization of the accounting and monitoring system and specific human resource development initiatives at all the levels of the ST CCS. The sharing of the accumulated losses between GoI, State Government and the CCS is based on the concept of origin of losses rather than any arbitrary proportions.

NABARD has been designated the Implementing Agency for implementing the Revival Package in all the states. NABARD is providing dedicated manpower at the national, state and district levels for implementing the Package.

A National Implementing and Monitoring Committee (NIMC) not only monitors the implementation of the Package regularly, but also takes necessary decisions on policy and operational matters.

The programme implementation is guided and monitored within each state by the State Level Implementing and Monitoring Committee (SLIC) and by the DCCB Level Implementing and Monitoring Committee (DLIC). The concerned Regional Office of NABARD supports the SLIC while each DLIC is supported by a dedicated DCCB level support team (DLST) comprising officers from NABARD, DCCB and Cooperation department.

A State Level Task Force is being set up in each State to periodically review issues of supervisory and regulatory concerns in respect of CCBs and SCB.

The process of implementing the Revival Package in any state begins with the signing of the Memorandum of Understanding (MoU) among the GoI, the participating state government and NABARD. The common draft of the MoU was finalised by the NIMC, and decisions taken in the NIMC on policy or operational issues could either be incorporated in the MoU while executing it or could be incorporated suitably while making amendments to the various Acts, Rules, byelaws etc. without making any change in the MoU. State specific issues which are not common to other states and are not against the spirit of the MoU and the Revival Package may be incorporated in the MoU.

A special audit of all PACS, DCCBs and SCB in every participating state would be undertaken to arrive at a true and fair assessment of the amount of accumulated losses as on 31 March 2004 as also a fair and acceptable proportion of such losses on the basis of the origin of such losses, i.e., losses due to credit business, Public Distribution (PDS) business, or other trading business etc. Special audit formats, manual and FAQs on special audit of PACS & FAQs on special audit of CCBs have been designed by NABARD to facilitate this exercise. These special audits would be conducted either by the personnel from the cooperative audit department of the state or by selected outsourced auditors after being suitably trained on the guidelines for the conduct of special audits. In either case, the exercise will be test checked by a set of independent Chartered Accountants who are members on DLIC. Every participating state would also promulgate an Ordinance as per para 9 of the MoU to amend the State Cooperative Societies Act to give effect to the institutional and legal reforms envisaged in the Revival Package or would enact the necessary legislation.

Certain provisions are also being made within the NABARD Act to enable availability of NABARD refinance to a cooperative in any tier either directly or through any regulated FI.

The RBI has prescribed fit and proper criteria for election to the Boards of the rural cooperative banks along with criterion for professionalisation of the boards of these banks and CEOs of these banks.

As PACS across the country were using different accounting systems which did not present a true and fair picture of their financial status, a Common Accounting System (CAS) has been designed which will ensure transparency and application of prudent accounting methods and is also emendable to both manual and computerized environments. The system would generate necessary outputs for internal control and management decisions as well as meeting the supervisory and regulatory requirements and needs of other associated agencies. To the extent possible, this will be computerized even at PACS levels.

Training modules for training of the elected directors and staff of PACS have been designed by a dedicated working group set up by NABARD. The group is now designing programmes for the higher tiers of the CCS.

Status of implementation

•

The implementation has begun in 25 states, viz., Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chattisgarh, Gujarat, Haryana, Jammu & Kashmir, Jharkhand , Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand, Uttar Pradesh and West Bengal which have executed the MoUs with GoI and NABARD

Implementation of the Revival Package for
Short Term Rural Cooperative Credit Structure (STCCS)
Status as on 31 July 2012

Sr.

Issue

Status

Execution of MoUs

Twenty-five State Governments have signed the Memorandum of Understanding (MoU) with GoI and NABARD, viz. Andhra Pradesh (AP), Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, J & Kr (J&K), Jharkhand, Karnataka, Madhya Pradesh (MP), Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Rajasthan, Orissa, Punjab, Sikkim, Tamil Nadu (TN), Tripura, Uttarakhand, Uttar Pradesh (UP), and West Bengal (WB). This covers more than 96% of the STCCS units in the country.

Special Audit of PACS

Guidelines and formats for conduct of Special Audit were circulated to all participating States. Further, training for Master Trainers and Departmental Auditors for conduct of special audit of Primary Agriculture Cooperative Societies (PACS) has been completed in all 25 implementing States. So far, Spl Audit has been taken up in 80,947 PACS and completed in 80,837 PACS:

Status of Special Audit of PACS :

State	CCBs in the State	PACS/ LAMPS^^	Spl. Audit in PACS		Vetted by DLICs (No. of PACS/ DLICs)	SLIC recommendation
			Spl. Audit in PACS			No. of PACS	GoI share ( cr )
			Started	Completed		No. of PACS	GoI share ( cr )
Andhra Pradesh	22	2,946	2,946	2,946	2946/22	2946	1997
Arunachal Pr. $	None	32	32	32	0	26	8
Assam $	None	760	755	755	0	681	58
Bihar	25	6059	6049	6049	6049/25	6049	323
Chhattisgarh	6	1,333	1,333	1,333	1333/6	1333	338
Gujarat	18	7,698	7,176	7,176	7174/18	7174	577
Haryana @	19	585	585	585	585/19	585	634
J & K	3	614	582	519	519/3	457	30
Jharkhand	9	1,333	1,333	1,286	1285/8	965	72
Karnataka	21	4,727	4,474	4,474	4474/21	4474	602
Madhya Pradesh	38	4,523	4,520	4,520	4520/38	4520	1502
Maharashtra #	30	20,914	20,813	20,813	20813/30	20813	2345
Manipur $	None	208	208	208	0	208	13
Meghalaya $	None	179	179	179	0	179	11
Mizoram $	None	326	177	177	0	133	3
Nagaland $	None	899	840	840	0	0	0
Orissa	17	2,732	2,726	2,726	2725/17	2725	643
Punjab	20	3,480	3,361	3,361	0	0	0
Rajasthan	29	5,259	5,153	5,153	5153/28	5153	434
Sikkim	None	166	152	152	0	135	2
Tamil Nadu	22	4,540	4,527	4,527	4527/22	4527	1554
Tripura $	None	268	268	268	0	268	69
Uttarakhand	10	753	729	729	729/10	0	0
Uttar Pradesh	50	7,479	6,740	6,740	6740/50	6740	1074
West Bengal **	17	5,740	5289	5289	5230/17	4502	231
Total : 25	356	83,553	80,947	80,837	74802/334	74593	12520

^^ PACS/LAMPS affiliated to CCBs/ branches of SCB and ceded to CBs/RRBs
@ The 2,441 PACS in 2004 were reorganised into 586 in 2006 # excluding Mumbai CCB $ No CCB, only SCB ** Regular Audit completed only in 5310 PACS out of which special audit completed in 5256 PACS

Due to non availability of complete records as on 31 March 2004 as also non completion of regular audit by departmental auditors as on 31 March 2004, Special Audit could not be taken up in some PACS in some States. However, the State Level Implementing Committees (SLICs) in Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, J&K, Jharkhand, Karnataka, MP, Maharashtra, Meghalaya, Mizoram, Orissa, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh & West Bengal have treated the process as Spl. audit in PACS as fully completed. Spl audit of PACS is completed but SLIC approval is yet to be taken in Nagaland.

3
A

Special Audit of Central Cooperative Banks (CCBs)/State Cooperative Banks (SCBs)
Special Audit of CCBs completed in all fifteen States as given below :

Sl.	State	CCBs in the State	Spl. Audit Completed	Vetted by DLICs	Approved by SLIC (No. of CCBs)
	Andhra Pradesh	22	22	22	22
	Bihar *	25	22	22	22
	Chhattisgarh	6	6	6	6
	Gujarat	18	18	18	18
	Haryana	19	19	19	19
	J & K	03	03	3	3
	Jharkhand ^^	9	8	8	8
	Karnataka	21	21	21	21
	Madhya Pradesh	38	38	38	38
	Maharashtra	30	30	30	30
	Orissa	17	17	17	17
	Rajasthan	26	26	26	26
	Tamil Nadu	22	22	22	18
	Uttar Pradesh	50	50	50	50
	West Bengal	17	17	17	15
	Total	323	319	319	313

* 3 CCBs under liquidation. ^^ One CCB under liquidation
Eight States in N.Eastern region do not have CCBs, as they have a two tier structure. Special audit of CCBs not taken up in Punjab and Uttarakhand.

Special Audit of SCB
Spl. Audit of SCBs completed in 17 States viz., Andhra Pradesh, Arunachal Pradesh, Assam, Bihar,Chhattisgarh,, Haryana, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Orissa, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal. Special Audit of SCB is completed but pending SLIC approval in Gujarat, J & K and Meghalaya. It is in progress in 2 States viz., , Karnataka and Nagaland SCBs. No SCB in Jharkhand. Special audit not taken up in Punjab and Uttarakhand.

Release of Recapitalisation Assistance
An amount of 9002.11 crore has been released by NABARD as GoI share for recapitalisation of 53,202 eligible PACS in seventeen States, 1510 ineligible PACS affiliated to 30 CCBs in three States and 13 CCBs in Orissa, while the State Govts. concerned have released 855.53 crore as their respective share. The details are as under:

Release of Recap Assistance to PACS that meet the eligibility criteria
An amount of 8521.40 crore has been released by NABARD as GoI share for recapitalisation of 53,202 eligible PACS in seventeen States, while the State Governments concerned have released 824.90 crore as their respective share. The details are given in the table overleaf.

Release of Recap Assistance to PACS that meet the eligibility criteria
( crore)

Sl	State	No. of PACS	GoI share	St. Govt. share	CCS share*	Total Recap Asst.
1	Andhra	2580	1589.67	215.98	166.91	1972.56
2	Assam	368	43.63	6.43	7.85	57.91
3	Bihar#	6633	265.06	24.12	74.06	363.24
4	Chhattisgarh	933	162.69	25.97	64.88	253.54
5	Gujarat	2330	333.47	27.33	25.00	385.80
6	Haryana	547	470.50	22.13	34.13	526.76
7	Karnataka **	4249	555.67	86.73	69.18	711.58
8	Madhya Pr.	3134	985.09	69.92	106.12	1161.13
9	Maharashtra	14769	1284.19	32.26	260.41	1576.86
10	Meghalaya	179	10.69	1.19	0.19	12.07
11	Orissa	2528	594.69	67.54	49.04	711.27
12	Rajasthan	3275	318.02	13.05	48.89	379.96
13	Sikkim	135	1.64	0.18	0.07	1.89
14	Tamil Nadu $$	3355	1078.84	147.58	157.05	1383.47
15	Tripura	261	69.17	7.71	2.11	78.99
16	Uttar Pradesh	4989	623.41	61.19	440.51	1125.11
17	West Bengal	2937	134.97	15.59	11.67	162.23
	Total	53202	8521.40	824.90	1518.07	10864.37

# PACS Reorganised after conduct of spl. Audit *PACS given two years time to bring in their share
$$ Refund of 0.49 crore received from Ramnad CCB & 0.07 crore from Tirunelveli CCB through TNSCB
** Refund of 0.87 crore received from Belgaum CCB

Release of Recap Assistance to PACS that do not meet the eligibility criteria
Recapitalisation assistance has been released to 30 CCBs in two States for 1510 ineligible PACS affiliated to them, the details of which are given as under:
( crore)

Sl	State	No. of CCBs	No.of ineligible PACS	GoI share	SG share	PACS share	Total
1	Gujarat	17	780	234.31	10.96	0	245.27
2	Maha	1	534	130.45	3.43	0	133.88
3	Orissa	12	196	48.08	3.94	0	52.02
	Total	30	1510	412.84	18.33	0	431.17

Release of Recapitalisation Assistance to CCBs
An amount of 67.87 crore has been released by NABARD as GoI share for recapitalisation of 13 CCBs in Odisha. The State Government has released 12.30 crore as its share. Details are as under:
( crore)

Sl	State	No. of CCBs	GoI share	St. Govt. share	CCS share	Total Recap Asst.
1	Odisha	13	67.87	12.30	110.70	190.87

Amendments to Cooperative Societies Act

Twenty one States have amended their respective State Cooperative Societies Act through Legislative Process viz. Andhra Pradesh, Arunachal Pradesh, Bihar, Gujarat, Haryana, Karnataka, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Meghalaya, Nagaland, Orissa, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal.
The State Govt of Chhattisgarh has taken a Cabinet decision approving the amendments in respect to the reform measures, as their earlier State Cooperative Societies Act has been submitted to Hon'ble President for assent.
The State Govt. of Assam has also approved the proposed amendments to CSA 2007, pending the actual amendment which is likely to take some more time in view of the statutory requirement for obtaining Presidential Assent for the earlier amendments suggested.
Draft amendments to Punjab and Uttarakhand CSAs have been vetted by NABARD and are under consideration of the respective State Govts. Punjab and Uttarakhand have not amended their respective CS Acts despite repeated follow up.

Amendments of Rules and Adoption of Bye-laws

Consequent upon the amendment to the State Coop Societies Act,10 States viz., Andhra Pradesh, Bihar, Gujarat, Karnataka, Madhya Pradesh, Orissa, Rajasthan, Sikkim, Uttar Pradesh and W.Bengal have amended the respective State Coop Societies Rules in tune with the amended Acts. Amendment of Rules is under progress in 10 States, viz., Haryana, J & K, Jharkhand, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Tamil Nadu and Tripura.
Of the 24 States which have SCB, bye laws of SCB have been amended in thirteen States viz., Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Maharashtra, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Sikkim Tamil Nadu and Tripura. It is in progress in seven States, viz., Arunachal Pradesh, J & K, Nagaland, Orissa, Rajasthan, Uttar Pradesh and West Bengal.
Of the 17 States that have CCBs, bye laws of CCBs have been amended in eight States, viz., Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Maharashtra, Madhya Pradesh, and Tamil Nadu and is in progress in six States viz., , J & K, Jharkhand, Orissa, Rajasthan, Uttar Pradesh and West Bengal.
The bye laws of PACS/LAMPS have been amended in twelve States, viz., Andhra Pradesh, Arunachal Pradesh, Bihar, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Mizoram, Tamil Nadu and Tripura. Amendment of bye laws of PACS is in progress in eight States, viz., J & K, Manipur, Meghalaya, Nagaland, Orissa, Rajasthan, Uttar Pradesh and West Bengal.
The process of amendment of Rules and bye-laws has been initiated in other implementing States.

Status of conduct of Statutory Audit by CAs in CCBs/SCB

NABARD has given a panel of Chartered Accountants (CAs) to eighteen States viz., Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal for conduct of Statutory Audit of SCBs and CCBs as on 31 March 2010. Audit as on 31 March 2010 was completed in all 18 States. Audit as on 31 March 2011 was completed in all 24 States where panel was given.Audit as on 31 March 2012 is under progress in SCBs and CCBs in all 2States viz., Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, J&K, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Punjab, Rajasthan Sikkim, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal.

Status of Elected Board in CCS Structure :

Sr.	Name of State	SCB	No. of CCBs		No. of PACS
Sr.	Name of State	SCB	Total	with Elected Board	Total	with Elected Board
	Arunachal Pradesh	-	-	-	32	23
	Assam	1	No CCB	No CCB	755	680
	Bihar**	-	22	3	8463	8463
	Chhattisgarh	1	6	6	1333	1333
	Gujarat	1	18	15	7174	6884
	Haryana	1	19	19	604	594
	J & K	-	3	1	612	110
	Jharkhand	No SCB	9	-	1332	1329
	Karnataka	1	21	20	4627	4513
	Madhya Pradesh	1	38	36	4523	4458
	Maharashtra ^^	-	30	25	20914	17234
	Manipur	1	No CCB	No CCB	208	208
	Meghalaya $	1	No CCB	No CCB	179	140
	Mizoram $	1	No CCB	No CCB	133	133
	Nagaland	1	No CCB	No CCB	899	90% done
	Punjab	1	20	15	3480	3352
	Rajasthan	1	29	29	5255	5255
	Sikkim $	1	No CCB	No CCB	166	166
	Tripura $	1	No CCB	No CCB	268	268
	Uttarakhand	1	10	10	753	753
	Uttar Pradesh	1	50	49	6740	6686
	West Bengal	1	17	17	5740	4630

$ No CCB, Only SCB ^^ Election process is on in 1032 PACS @ including others such as trading societies
**Data on elections to PACS is in respect of re-organised PACS. Elections stayed in SCB.
Elections are yet to be held in Andhra Pradesh, Odisha and Tamil Nadu.

Status of Professional Directors as per Fit & Proper Criteria:
Professional Directors are put in place as per Fit and Proper Criteria in SCBs of 11 States viz., Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Manipur, Mizoram, Rajasthan, Sikkim, Tripura and West Bengal. Further in Haryana, Professional directors as per criteria placed in all CCBs. In seven States Professional Directors are placed in some of the CCBs viz.,11 of the 22 CCBs in Andhra, 17 of 18 CCBs in Gujarat, 14 of 21 CCBs in Karnataka, 24 of the 30 CCBs in Maharashtra, 15 of 17 CCBs in Orissa, 28 of 29 CCBs in Rajasthan and 44 of 50 CCBs in Uttar Pradesh.

Status of Chief Executive Officers (CEOs) as per Fit & Proper Criteria:
The CEOs of SCBs of 11 States viz., Andhra Pradesh, Arunachal Pradesh, Gujarat, Haryana, Meghalaya, Nagaland, Orissa, Sikkim, Tripura and Uttar Pradesh are as per Fit and Proper Criteria.
In CCBs, CEOs are as per Fit and Proper criteria in all 22 CCBs in Andhra Pradesh, 17 out of 18 CCBs in Gujarat, 13 out of 19 CCBs in Haryana, 6 out of 21 CCBs in Karnataka, 30 out of 38 CCBs in Madhya Pradesh, 26 of the 30 CCBs in Maharashtra, 8 out of 17 CCBs in Orissa and in 45 out of 50 CCBs in Uttar Pradesh. The remaining CCBs in Haryana have advertised for recruitment of CEOs as per Fit & Proper criteria and the selection process is under way.

HRD- Training

Nine modules have been developed so far for capacity building of the staff and the Board of the STCCS.
For conduct of training under Modules I & II training has been imparted to 259 Master Trainers from 23 States. These master trainers have trained 2081 District Level Trainers to conduct field level training programme for PACS. So far, 86,276 PACS secretaries have been trained in module I in 21 States and 1,29,775 elected members of PACS have been trained in 18 States in module II.
A training module has been designed for PACS Secretaries focusing on Common Accounting System (CAS) and Management (MIS). So far, 76,457 PACS functionaries in 19 States have been provided training on CAS/MIS.
Training for auditors of the Audit Department and supervisors and inspectors of CCBs on CAS in PACS is under progress and so far 6,019 auditors/supervisors in 19 States have been trained. These officials are to provide handholding support to the PACS in grounding of CAS.
A training module for Board of Directors of SCBs and CCBs has been designed. A total of 4,158 board members of CCBs have been trained from 16 States.
Training programmes for CEOs of CCBs of 5 days duration have been conducted for identified 368 CEOs of CCBs from 16 States and CEOs of 6 SCBs in NER States, at BIRD, Lucknow to enable them to recognize the increased business opportunities in the changed scenario.
A five-day in campus orientation programme for Branch Managers and Senior Officers of CCBs/SCB for business development/ diversification has been developed and 8,188 Branch Managers/Senior Officers of CCBs/SCB in 23 States have been trained.
Two new programmes on (i) Business Development and Profitability for PACS Secretaries (Module VIII) (ii) Orientation programme for Supervisors/Inspectors of PACS (Module IX) have been developed during 2010-11. 151 Master Trainers from 22 implementing States were trained at BIRD, Lucknow on Module VIII & IX. The Master Trainers trained under BDP have trained 556 DLTs from 6 implementing States. As on date, 39,387 PACS staff in 12 States have been trained in module VII.

Common Accounting System (CAS) and MIS for PACS

Common Accounting System (CAS) for PACS has been designed and Manual on CAS has been circulated to the RCS of all implementing States. While the process of adoption of CAS is underway in 20 States, in the other States where MoUs have been signed the RCS concerned have been advised to adopt CAS on the lines suggested by NABARD.
CAS/MIS has been introduced in almost all PACS in 15 states viz., Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh and W Bengal. Of these, fourteen States (except Madhya Pradesh) have printed the necessary registers for implementing CAS/MIS. In Madhya Pradesh and Meghalaya the existing stationery with necessary modification as required for CAS/MIS are being used.
Registers have been printed & distribution is in progress in Bihar, Jammu & Kashmir, Jharkhand, Mizoram and Sikkim
A standardised set of MIS for PACS has been designed and circulated among RCS of implementing States to aid decision making at PACS and at all other levels including higher financing agencies, regulators and other agencies. A Handbook on MIS has also been issued.
As mentioned above, apart from training the PACS functionaries under new CAS/MIS, Cooperative Auditors, Inspectors and Supervisors are also being trained to support the PACS functionaries to adopt the new system.

Computerisation

Guidelines on computerization of CAS and MIS for PACS were issued in two separate modules: (i) development, procurement & deployment of software including training on software, and (ii) procurement and installation of hardware.
In Haryana, state specific software was developed by M/s Nelito Systems Ltd. Based on open tendering process, SLIC has awarded the hardware and software deployment contract for roll out of the software in 325 PACS to M/s HCL Infosystems. Training of Software Deployment Agency (SDA) by Nelito is completed. Installation of hardware in all 325 PACS is completed. Training of PACS staff by SDA is in progress. SLIC has approved the tendering for SDA & procurement & installation of hardware in respect of remaining 277 eligible PACS in the State. Tenders for hardware procurement and identification of SDA floated for 277 PACS under Phase II. Finalization of vendor for hardware is in progress. Retendering has been done for identifying vendor for roll out of software in the second phase.
In Tamil Nadu, the software developed by Onward eServices is being rolled out. M/s Onward eServices and M/s Wipro Infotech have been identified through tendering process for rolling out the software and providing training to the PACS staff. Of the 1653 PACS that have been identified in the first phase for computerisation, roll out is in progress in 1586 PACS of which 383 PACS have been brought online.
In Andhra Pradesh, the State Govt has engaged Co-Option Technologies for IT enabled services in PACS, wherein CAS/MIS would be incorporated. So far 1234 PACs have been computerised and MIS has been generated in all the PACS.
As per the decision taken in the VII National Implementing and Monitoring Committee (NIMC) meeting held in September 2009, NABARD has finalised the Core Software and sent a CD containing the software to all 20 States that have opted for the Core software viz., Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Jammu & Kashmir, Jharkhand, Karnataka, MP, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, UP and W Bengal. Preceding this, the revised guidelines for rollout of the software and training of PACS staff & hardware procurement were sent to all implementing States.
Dry run of the software is completed in 12 States viz., Arunachal Pradesh, Assam, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Odisha, Tripura Uttar Pradesh and West Bengal and is in progress in Rajasthan . Steps for dry run are being initiated in the remaining States.

Monitoring

For guiding and monitoring the implementation of the package at national level, National Implementation and Monitoring Committee (NIMC) has been constituted. So far nine meetings of the NIMC have been held. The last meeting was held on 27 January 2011.
At State level, the progress is being monitored by State Level Implementing and Monitoring Committee (SLIC) and at district levels by DCCB level Implementing and Monitoring Committees (DLICs).
At NABARD level, review meetings of Regional Offices of Implementing States are held periodically.

Expenditure incurred under Package

Other expenditure (other than recapitalisation assistance) of 242.01 crore has been incurred as on 31 July 2012 towards Special Audit, Human Resources Development, Technical Assistance and Implementation Costs.

Support from Multi-lateral Agencies

World Bank: An agreement has been entered into between GoI and World Bank on 2 November 2007 for financial assistance of US $ 600 million to GoI for implementation of Revival Package in five States viz., Haryana, Gujarat, Orissa, Uttar Pradesh and West Bengal. World Bank has so far released US $ 437.14 million to GoI.
ADB: GoI had, on 11 December 2006 entered into an agreement with Asian Development Bank for availing financial assistance of US $ 1 billion for implementing the Revival Package. Asian Development Bank (ADB) has so far released US $ 800 million to GoI for implementation of the programme in five States, viz. Andhra Pradesh, Bihar, Rajasthan, Madhya Pradesh and Maharashtra.
KfW: KfW and GoI have entered into an agreement on 20 December 2007 for financial assistance of € 130 million to GoI for implementation of the Revival Package in 5 States along with ADB viz., Andhra Pradesh, Bihar, Rajasthan, Madhya Pradesh and Maharashtra. KfW has so far released € 91 million to GoI.

Status regarding Task Force Report on LTCCS

A Revival Package for Long Term Cooperative Credit Structure (LTCCS) has been worked out by GoI and discussed with State Governments. The Task Force constituted by GoI to review the need for the Revival Package for LTCCS has since submitted its report to GoI on 25 February 2010.

Special Package for NER States

GoI has, on 25 November 2008, approved special dispensation and relaxations under the Revival Package for STCCS in North Eastern Region (NER) States. The relaxations include permission to the State Govts. to contribute equity in excess of the limit of 25% if the equity infusion is required by the SCB to comply with Section 11(1) of the BR Act, 1949 (AACS); grant assistance for HRD initiatives will be for four years and will culminate with the completion of implementation period; the financial package covers all societies doing agri credit business, irrespective of their recovery levels; and the financial package will be shared by the GoI and State Govt. in the ratio of 90:10, irrespective of the origin of losses and existing commitments.

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Publication: Strengthening India's Rural Co-operatives - A Programme for Reforms

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