The Reserve Bank of India (RBI) has called for stronger governance, professional leadership and enhanced institutional capacity in Urban Cooperative Banks (UCBs), while stressing closer coordination with Registrars of Cooperative Societies (RCSs) and the Central Registrar of Cooperative Societies (CRCS).
The RBI hosted the Third Conference of Registrars of Cooperative Societies (RCSs) at its New Delhi office on Tuesday, bringing together Deputy Governors Swaminathan J. and Shirish Chandra Murmu, Central Registrar of Cooperative Societies Shiv Pal Singh, RCSs from various States and senior RBI officials.
Addressing the conference, Deputy Governor Swaminathan J. emphasised the need for stronger governance and institutional capacity in UCBs, along with closer coordination between the RBI and RCS/CRCS authorities. He also stressed timely regulatory action wherever required and stronger safeguards against cyber-enabled frauds and money-mule accounts.
He highlighted Mission SAKSHAM as an important initiative aimed at strengthening capacity and skills within the cooperative banking sector.
Deputy Governor Shirish Chandra Murmu said that while cooperation has deep roots in India, a cooperative society assumes greater responsibilities and accountability once it is licensed to function as a bank.
He underlined the importance of professional and fit-and-proper Boards and senior management, robust internal controls, greater adoption of technology and timely resolution of weak UCBs.
Central Registrar Shiv Pal Singh also stressed closer coordination between cooperative authorities and the RBI, continued professionalisation of UCBs and timely resolution of banks under liquidation.
The conference discussed a range of governance, regulatory and supervisory issues concerning UCBs, including the expectations of the RBI and the Deposit Insurance and Credit Guarantee Corporation (DICGC).
The discussions come amid the RBI’s continued focus on strengthening the governance, resilience and regulatory compliance of the cooperative banking sector.
