Roorkee : 14 February, 2016

In an unprecedented move, the district cooperative bank (DCB) has adopted a resolution that it gives loan to the farmers for purchasing the old vehicles for their daily use. Besides, it said that it will not seek any financial favours from the government from now in for functioning of the system of their bank.

However, government said that they would examine this scheme of the bank based on the provisions of Uttarakhand Cooperative Societies Act, 2003 and deal in the matter with Vaidyanathan Committee on rural cooperative system that can bank give loan on secondhand vehicles or not.

"According to a general notion, we believe that bank can not give loan on old vehicles. So we examine it to check its legality and other aspects. If we find any damage to DCB through this scheme of the bank, power is inherent in state government to quash it (scheme)," secretary (cooperative) Vijay Kumar Dhaundiyal told TOI.

The 14-member board of district cooperative bank (DCB), which has its headquarters at Roorkee, under the chairmanship of Sushil Chaudhary passed four resolutions on Friday in the meeting of board. Loan facility over old/secondhand four-wheelers like car, refusing the government for their equity investment further in the bank, loan facility after mortgaging the immovable property to 70 % of the mortgaged property and loan facility upto Rs 50,000 for working journalists were decided resolutions.

"Since farmers can not purchase new vehicles for their own due to high price of the vehicles in the market so we have decided to give them a facility of loan for purchasing of old vehicles for their daily use," said chairman of DCB, Sushil Chaudhary.

Interestingly, the nationalized banks reportedly do not provide loan facility over the purchase of secondhand vehicles. "We are an autonomous institution. We have own constitution, which offers us (the bank's board) to make rules and provisions for the banking operations, so after having passed these resolutions from the board meeting all have become effective automatically," underlined Chaudhary.

The DCB, which has around 20,000 customers across 22 branches in Haridwar district, receives around Rs 30 lakh from state government annually but it has now decided that it refuses taking this sum from the government from next financial year. However, some believe bank's move is meant for stopping government interference in the functioning of the bank. "If bank takes financial share from bank, it, for instance, abides with the guidelines of government in recruiting the staff. If bank is fully self-reliant than it (bank) sets own mechanisms for the selections of staff," said a former official of state cooperative bank, who did not wish to disclose his identity. TOI

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