Impact of Revival Package on Short-Term Rural Cooperative Credit Structure (STCCS) in India

The revival package of Central Government provided financial assistance to short term cooperative credit structure, which works with a three tier system. Before revival package, PACS closely worked with second tier (i.e. with DCCBs). But PACS are now delinked in Bihar from second tier and allowed to function independently, whereas in other study states PACS still play an important role, but function independently. This revival package was worked out and implemented from 2007 on the recommendation of Vaidyanathan Committee. Under package, the State Government has to its Co-operative Acts and rules, while each tier of cooperative has to amend and adopt new bye-laws and CAS, etc., that all complied with by each tier. NPA, CRAR, ROA, recovery percentage and business per employee slowly improved in the first tier (i.e. SCB) and second tier in Tamil Nadu, Andhra Pradesh and Karnataka, whereas in Bihar and Maharashtra, they require to work hard further. Financial positions of PACS have not improved much as expected by the Government as recovery percentage is slowly improving. Since the cadre post was abolished for PACS, a majority of PACS failed to appoint secretaries from their own funds.