CARD bank employees demand merger with OSCB

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The employees' association of the ailing Cooperative Agricultural and Rural Development (CARD) banks, set up for providing agricultural loans to the farmers, has demanded their merger with the Odisha State Cooperative Bank.

For the well being of the employees of the CARD banks, the state government should initiate measures for merger with the OSCB, said Hrushikesh Mishra, general secretary of All Odisha CARD Bank Employees' Association.

The association alleged that the apex bank, Odisha State Cooperative Agricultural & Rural Development (OSCARD) bank, is not releasing a sum of Rs 12.88 crore (as ordered by the Registrar of Cooperative Societies) to CARD banks in respect of the interest component of loan waived under the Agricultural Debt Waiver and Debt Relief Scheme, 2008 even after reimbursements received from the Union government to this effect.

In 2008, the CARD banks had proposed to the Centre to waive about Rs 150 crore loan amount. The Centre had approved to write off Rs 143.58 crore through OSCARD bank in 10 installments.

The release of the amount by the OSCARD bank will facilitate meeting the statutory dues of the employees and ex-employees who are in dire straits and struggling to make both ends meet in the absence of regular salary payment, Mishra maintained.

More than 76 employees who used to get their monthly salary from the interest amount paid by farmers, have been working unpaid for last three years while about 700 who retired voluntarily are yet to receive their retirement benefits.

The OSCARD bank gets funds from the National Bank for Agriculture & Rural Development (Nabard) at seven per cent interest. The money is extended to the farmers as loans at 12 per cent interest through CARD banks, which keep a margin of 3.5 per cent for the services.

It may be noted that CARD banks functioning since 1938 are providing loans for minor irrigation projects, pisciculture, horticulture and plantation, animal husbandry, farm mechanization, diesel and electrical pump sets.