Opposing BoM: Sahakar Bharati joins hands with Maha UCBs

Maharashtra Urban Cooperative Banks Federation (MUCBF)-the apex body of Maharashtra UCBs organized the meeting of Directors and Senior Executives of UCBs in India for considering issues concerning the appointment of Board of Management as indicated by RBI in its press release recently.

The issue which has agitated the entire urban cooperative bank fraternity is also being opposed by the Sahakar Bharati which chose to be one of the organizers of the meeting held in the MSC Bank training college, Vashi, Maharashtra.

It bears recall that RBI recently issued the draft guidelines on Board of Management (BoM) for Primary (Urban) Cooperative Banks (UCBs). The guidelines suggest that every UCB should constitute a BoM, in addition to its Board of Directors (BoD). This move was earlier strongly opposed by the cooperative banking fraternity including Sahakar Bharati.

All the representatives present on the occasion unanimously rejected the concept of imposition of Board of Management (BoM) as it is undesirable, untimely & unnecessary. It was unanimously decided that, the RBI’s move to impose Board of Management (BoM) would be opposed collectively.

However, NAFCUB officials also assured their support for raising the issue with RBI. The Co-operative Bank Federation and Sahakar Bharati office bearers expressed their gratitude for the overwhelming response to the meeting called at short notice.

The Meeting was attended by Maharashtra Urban Cooperative Banks Federation Chairman Vidyadhar Anaskar, MSC Bank Member Sanjay Bhende, Sahakar Bharati General Secretary Uday Joshi and other eminent dignitaries. There were more than 140 delegates representing the country’s nearly 69 banks attending the event.

It is worth mentioning that while recently addressing the “Sahakar Setu 2018” in Gujarat ,RBI’s Deputy Governor N.Vishwanathan had touched on the contentious issue of making BoM in addition to BoD. He said, “BoM will work under the guidelines of BoD and board of directors will appoint BoM. However, we have received several concerns from UCBs and we will address them soon”, he added.

Sharing the details of the event Sahakar Bharati General Secretary Uday Joshi wrote, “A conference of UCBs was jointly organised by Sahakar Bharati, MSC Bank, Maharashtra Fed of UCBs, Maharashtra Association of UCBs and NAFCUB at Vashi, Navi Mumbai. 69 UCBs & 140 delegates were present. Unanimously resolved to protest the RBI proposal of BOM. Thanks to All Delegates & UCBs”.