Srinagar, Aug 20: Commissioner Secretary, Cooperative Department, Yasha Mudgal, chaired a High-Level Committee meeting to review the performance, functioning and development initiatives of cooperative credit institutions across Jammu and Kashmir, calling for stronger governance, faster reforms and greater support to rural borrowers.

The meeting was attended by senior officials from NABARD and the Reserve Bank of India (RBI), besides the Managing Director of J&K State Cooperative Bank (JKStCB), heads of District Central Cooperative Banks (DCCBs) and other officials.
NABARD General Manager Vikas Mittal presented a detailed overview of the financial and developmental performance of cooperative banks in the UT. RBI Deputy General Manager Ram Swaroop stressed the need for robust corporate governance, regulatory compliance and effective supervision. He also called for expediting the constitution of Boards of Directors of the J&K Central Cooperative Bank and JKStCB.
Mudgal said cooperative credit institutions have a vital role in financial inclusion, rural development and livelihood creation, urging banks to ensure timely and affordable credit for farmers, rural households, entrepreneurs and other eligible beneficiaries.
A detailed review was conducted of the PACS Computerization Project. Mudgal directed officials to adhere strictly to implementation timelines and T-7 and T-1 end-of-day and reconciliation requirements. Districts lagging behind were asked to receive priority attention, while system integrators were directed to speed up reconciliation, training and technical handholding in coordination with NABARD.
Operational issues concerning Sahakar Sarthi Private Limited were also reviewed, with concerned cooperative banks and the Registrar, Cooperative Societies, directed to resolve pending issues within fixed timelines.
The Commissioner Secretary further called for newly established Multipurpose PACS (M-PACS) to become fully functional and financially viable at the earliest. She stressed greater agricultural term lending and diversification into suitable non-agricultural credit portfolios.
Mudgal directed cooperative institutions to ensure strict compliance with the Banking Regulation Act, KYC norms and other regulatory requirements. She also called for disposal of non-banking assets and transfer of eligible unutilised funds to the Depositor Education and Awareness Fund.
Future recapitalisation, she said, should be linked to measurable financial and performance indicators. Officials were also directed to expedite the Special General Meeting and subsequent election of the JKSTCB Board as per applicable rules.
Calling for stronger financial discipline, Mudgal identified reduction of NPAs, improved credit-deposit ratios, stronger recovery and enhanced net worth as key priorities.
She also stressed greater adoption of digital banking, better customer service and stronger internal systems to make cooperative banks more transparent, technology-driven and member-centric.
Mudgal said a resilient cooperative banking network must become a stronger instrument of rural credit, entrepreneurship, financial inclusion and sustainable economic growth across Jammu and Kashmir.