Thiruvananthapuram: Major revisions are underway in the Cooperative sector to safeguard against fraudulent activities in cooperative banks and enterprises. One of the major proposals is to mandate the recording of governing body decisions (minutes) in both physical and digital formats in a way that they cannot be altered later.

All members must sign the minutes, and any irregularities detected during audits can be notified to the police or vigilance authorities by the auditor. Draft amendments have been prepared to incorporate these provisions into the statute.

Instances have emerged where decisions were added into the minutes without the knowledge of many governing body members, as seen in Karuvannur.

Other directives include:

  • Meeting minutes should be read aloud to all governing body members prior to the next meeting.
  • Minutes must be retained by the Chief Executive Officer.
  • Governing body members can review the minutes, but they cannot be removed from the institution.
  • Loan details of governing body members and their relatives must be submitted annually.
  • Borrowers' income and repayment capacity should be assessed and documented.
  • Co-operative banks must certify loan details, certified by the Chief Executive Officer, and must be submitted as a separate report to the Registrar every three months.
  • Distant relatives are prohibited from simultaneously serving on the governing body. This extends to relatives such as siblings of spouses or children of siblings.

All governing body members are required to undergo training, failure to do so within six months will result in the annulment of their membership. Former employees of cooperative banks are barred from immediately joining the governing body upon retirement, at least for five years. 

Government approval mandated for mergers

The amendments also stipulate that any cooperative society in Kerala seeking to merge with another society must obtain government approval. Also, the scheme related to the merger must be endorsed by the Registrar.