Nitin Gadkari pushes for new law in cooperative sector

National National

Posted by AI on 2025-05-12 18:41:03 | Last Updated by AI on 2026-09-26 09:02:14

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Road Transport and Highways Minister Nitin Gadkari has urged the Maharashtra government to draft a new law for the cooperative sector to cater to evolving economic conditions.

Speaking at the 27th anniversary of the Maharashtra State Cooperative Bank, Gadkari said that the bank should conduct a comprehensive study on the socio-economic impact of the cooperative movement in the state. The minister emphasized the need to modernize the sector and make it more transparent, professional, and corruption-free.

Gadkari stated that cooperative banks play a crucial role in financial inclusion and enhancing the economic status of farmers and the rural population. They should focus on increasing their deposits and lending to farmers and MSME sectors, he added.

The minister's comments come as a growing number of cooperative banks in the country are facing financial troubles, with some even suspending operations amid rising fraud and mismanagement cases.

Gadkari's proposal has been lauded by experts who believe that the sector needs reforms to ensure that it remains viable and relevant in the changing economic landscape.

"The cooperative sector needs reforms, there's no doubt about that. It's also a fact that the sector has been plagued by problems like corruption and mismanagement," said Dr. Kunal Mitra, an economist. "A new law for the sector, aimed at modernizing it and making it more transparent, could be a step in the right direction, but it has to be accompanied by rigorous enforcement and accountability mechanisms."

Only time will tell whether Maharashtra will choose to take action on Gadkari's proposal.

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