UP Cooperative Bank pushing for computerisation effectively rejecting NABARD aid, ordered that purchase be made from a particular firm

First, funds meant for revival of the state’s primary agriculture cooperative societies and district cooperative banks (DCB) were used for buying crockery.

Now, computerisation of the district co-op banks has been undertaken in a big way. The banks have been asked to complete computerisation by March 2009. No tenders have been called for and no bids invited. The computerisation is to be financed by NABARD as part of its revival package next year. But there is a condition: “Expenditure now being incurred for the purchase of computers independently by the DCBs will not be reimbursed under the revival package at a later date,” NABARD has said. But despite the warning, the UP Cooperative Bank is pushing for computerisation.

Though 29 loss-making co-op banks have been exempted, as many as 21 profit-making banks are being pressurised to buy computer hardware and software from a particular firm. Altogether, the cost will come to a whopping Rs 120 crore. The UP Consumer Cooperative Federation has been nominated the nodal agency for the purchase of the hardware. The district co-op bank of Meerut, has already placed an order of Rs 2.44 crore with the federation for the purchase of computers for its 23 branches.

There is no explanation why the UPCB is not interested in availing the NABARD package, or why it is not following standard procedures like inviting tenders.

Amal Kumar Verma, Principal Secretary of Cooperative Department, who is also the administrator of the UPCB and the Registrar of Cooperative Societies, said: “Are we supposed to act as per the wishes of NABARD? Why should the profit-making cooperative banks wait for the NABARD assistance?”

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