This would also promote savings habit among members. Increasing member stake through savings in PACS will result in better involvement of members and a much more alert membership and much better performance of PACS including higher loan recovery. iii. Co-operatives should function in the true spirit of co-operation and managed by duly elected members. Elections should be held regularly.
In order to improve the quality of management, Directors and CEOs should be appointed on the basis of professional competence, integrity and merit. Administrative interference in day-today management should be stopped. iv. The reform package envisages freedom to all tiers of the structure to avail loan from any of the RBI regulated entities at competitive rates of interest.