Lucknow: District Co-operative Banks in UP are facing financial crunch as they have been considered ineligible for getting generous monetary assistance from National Co-operative Development Corporation (NCDC).

Only 14 out of 50 Districts Co-operative Banks have so far managed to receive aid. Rest of the banks have become ineligible, thanks to their continued loss makings.
Their bankruptcy proves to be an obstacle in the way of their being high-tech. There are 1277 branches of 50 District Co-operative Banks in UP.

Under generous financial assistance, NCDC is disbursing 70 per cent loan and 20 per cent subsidy of the project cost for the computerisation of District Co-operative Banks and Uttar Pradesh Co-operative Banks.

Beneficiaries have to spend 10 per cent from their resources. Projects of Rs 61 crore have been approved in Districts like Lakhimpur Kheri, Meerut, Bijnor, Muzaffarnagar, Ghaziabad, Agra, Mathura, Firozabad, Mainpuri, Banda, Urai, Jalon and Mirzapur.


Rest of the District Co-operative Banks customers are facing difficulties too.


For taking the benefit from this scheme, District Co-operative Banks Pratapgarh and Lucknow gave proposal which was turned down by NCDC due to banks impoverishment.


Their proposals are pending with state government whose recommendation will pave the way of disbursing assistance to these loss making banks.


Mukesh Kumar, NCDC state unit Director, says majority of banks are not eligible for assistance thanks to their loss making. So government recommendation is compulsory for NCDC to disburse assistance.


Having core banking system in its all branches, District Co-operative Bank, Lakhimpur has become a model for all as its five ATMs are already functional.


Lakhimpur District Co-operative Bank has gone for a makeover after receiving the aid of Rs 14 crore from the Corporation.


(JPN/Bureau)