Multi-State Cooperative Societies (MSCS) Amendment Bill, 2022:
The Union Cabinet has approved the Multi-State Cooperative Societies (MSCS) Amendment Bill, 2022, which seeks to amend the Multi-State Cooperative Societies Act, 2002
- A new Ministry of Cooperation was formed in July 2021 with an objective to provide renewed impetus to the growth of Cooperative Sector.
- The amendments seek to improve ease of doing business, bringing greater transparency and enhance governance.
- It has included provisions relating to representation of women and Scheduled Caste/Scheduled Tribe members on the board of multi-state cooperative societies.
- The amendments have been brought to reform the electoral process, strengthen monitoring mechanisms and enhance accountability.
- It will also widen the composition of board and ensure financial discipline, besides enabling the multi-state cooperative societies to raise funds.
- To improve the governance of multi-state cooperative societies, the Bill has specific provisions for setting up of Cooperative Election Authority, Cooperative Information Officer and Cooperative Ombudsman.
- There will also be a provision for issuing non-voting shares in multi-state co-operative societies to help them raise funds.
- Further, the newly proposed Rehabilitation, Reconstruction & Development Fund will help in revitalising sick co-operative societies.
- The Bill will incorporate the provisions of the 97th Constitutional Amendment.
- Moreover, the provision for stipulating prudential norms will bring in financial discipline.
- The amendments relating to auditing mechanism will ensure more accountability.