Jamia Co-op Bank: Beg for restoring confidence in co-ops

Delhi based Jamia Cooperative Bank Chairman Mirza Qamrul Hasan Beg is critical of Financial Resolution and Deposit Insurance (FRDI) Bill and feels that it will affect co-op banks’ credibility among customers. He said so in a free-wheeling chat with Rohit Gupta, Indian Cooperative correspondent.

”Customers of cooperative or any other banks deposit their money with the confidence that their money is safe in banks but the implementation of the FRDI bill will undermine banks’ credibility detracting from depositors willingness to keep their money in banks”, he said.

Talking about his bank Beg said it is currently focused on improving infrastructure and the internal system of its eight branches across Delhi and is not planning to expand business at least in the foreseeable future, he said.

“The bank’s reconstructed head office in Sarai Jullena has begun to carry out loan appraisal and similar things itself”, the chairman added and said the bank has started E-Lobby facility in three branches including Batla House, Zakir Nagar and Jasola for its customers.

Established in 1995, the Jamia Cooperative Bank has 8 branches in the Delhi region. The bank has over 13,000 members and during the last financial year 2016-17 earned a net profit of Rs 2.15 crore.

The chairman informed that all the branches of the bank have ATM facility for customers.

Despite the individual efforts of the UCBs, co-op sector gets bogged down by the govt’s anti-cooperative stands, felt several cooperators.

Recently NAFCUB –the apex body of UCBs and credit societies in the country held a meeting of stake-holders in Delhi on the issue of FRDI Bill.

The bill has already been referred to the Joint parliamentary committee (JPC) headed by Bhupendra Yadav and NAFCUB has even made a representation before the Joint Parliamentary Committee (JPC).

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