Cabinet approves proposal to draft new Act to regulate Co-operative sector

The cabinet of ministers has approved a proposal to draft a new bill in a bid to regulate and resolve the issues of the co-operative sector.

According to a cabinet proposal tabled by Minister Rishad Bathiudeen, certain co-operative authorities have been de-stablised owing to heavy losses suffered due to financial mismanagement.

The new Act is expected to intorduce new laws which revolve around regulating, supervising, developing, and issuing licences to operate co-operative institutions.

However, Minister Bathiudeen, in his proposal, also pointed out that Co-operative Banks had accumulated Rs 115 billion as deposits while also granting Rs 59.8 billion as loans.

Further, other co-operative institutions have also accumulated funds totalling upto Rs 104 billion while issuing Rs 95 billion worth loans, Mr. Bathiudeen's proposal said.

At present, there are 2269 Co-operative Banks, 17 Co-operative Bank Societies, and 8004 Co-operative financial bodies in the country.