Singh, who was speaking on the occasion of the centenary celebrations of cooperatives here, said the task force set up to improve efficiency and viability of the cooperative banking sector was expected to present its report shortly.
"Our government is committed to the success of cooperatives. We are seriously engaged in considering possible constitutional amendments to ensure democratic, autonomous and professional functioning of cooperatives", he told a conference organised by the National Cooperative Development Corporation.
The Prime Minister said the constitutional amendments will ensure that the three key words of empowerment of cooperatives - "voluntary", "democratic" and "autonomous" and the three rights - 'right to elections', 'right to autonomous management' and 'right to independent professional audit' - are incorporated in the constitution so that no state law can abrogate them.
Singh said the cooperative pyramid in the country was weak mainly due to mounting transaction costs without any real value addition.
"This high cost structure is not only affecting resource availability for growth but also leading to the problem of viability and solvency of the entire cooperative system. We would, therefore, need to have a serious look at the multi-tier structure of the cooperative sector", Singh said.
On the task force, he said, it will recommend an implementable action plan for reviving rural cooperative banking institutions with an appropriate regulatory framework.
The task force will also recommend other measures required to improve efficiency and viability of the cooperative banking sector, he added.
Singh said the Centre had already taken the initiative of laying a strong foundation for a member-centric cooperative movement by enacting the Multi-State Cooperative Societies Act, 2002, in which many restrictive provisions have been removed.
State governments are also being advised to amend their cooperative law on similar lines, he said, adding they must come forward to do their bit to revitalise the cooperative movement.