The Meet of the Economists on the Cooperative System, at Osmania University, Hyderabad, Telangana on 20-12-2021 had released the following declaration to the Nation;

"Capitalism and socialism are very much discussed in the financial world, but India gives priority to co-operation. Co-operation is in line with our traditions and values. Co-operation, in which the collective power of the people becomes the driving force in the economy, is important for the country's grassroots economy."

- Shri Narendra Modi, Prime Minister.

“The United Nations support Cooperatives. There is a growing consensus among international agencies about their importance. The World Bank recognizes the role of Cooperatives in revitalizing the agriculture sector and the rural economy. In addition, an IMF survey in 2007 showed that “Cooperative Banks have become important part of many financial systems, with attendant potential financial stability”.

- United Nation Organization UNO.

Cooperative system is an economic system having addressed the principal economic issues of the concerned people(Members) at micro and macro level and made them a prime share holder in the National Income ambit. India is adopting the Cooperative system after the historic resolution adopted by the National Development Council in 1948 along with the Private Sector and the Public Sector.

As a result of implementation of the Cooperative sector as one of the central aim of the national policy, the development status of the rural cooperative credit is;

• 92% of villages are covered under the services of cooperatives activities.
• 13.82 crores Members in rural cooperative credit, they constitute 60% of the Households.

The Cooperative system is an Inclusive Growth Strategy in the Indian economy. The Private sector is an Exclusive Growth Strategy, where in the Small & marginal farmers, the rural artisans and marginalized section like SC, ST people will be badly affected.

The implementation of the Section 12(1) of the Banking Regulation(Amendment) Act-2020 makes the change of characteristics of Cooperative system into Private Sector and this will have wide range of effects on the rural economy. This is not good for Indian economy and rural India, leaving aside the legal implications involved. Cooperative system was emerged to protect the users from the exploitation of the Private Sector. Mahatma Gandhi said that Cooperation is a Shield not a Sword of the weak people. Further the ideals of Our Hon’ble Prime Minister are defeated and in due course of time, the country's grassroots economy will go into the hands of Private Finance Corporations.

It compels the Small & marginal farmers, the rural artisans to get their credit needs from the Private Sector Banks, i, e they are foregoing the fundamental right of doing the Cooperative Banking business collectively.

Hence the Economists Meet on Cooperative System releasing this declaration to the Nation as a “Osmania Declaration on the Cooperative System”.;

The Economists Meet on Cooperative System urges the Government of India, that the Section 12(1) of the Banking Regulation(Amendment) Act-2020 needs to be withdrawn in the larger interests of the rural economy. And, the resolution of the National Development Council of 1948 should be continued and it should be the central guiding principle of the National policy. And the financial assistance to Cooperative Sector to be continued.

- Sambharapu Bhoomaiah, Director.