Indian Cooperative desk is flooded with co-operators’ reactions on the Saturday promulgation of the Ordinance bringing urban cooperative banks under the total supervision of RBI.
Amruta Vasantrao Pawar, Chairperson, Godavari UCB
We welcome the decision of the central government clearing amendments to ensure greater RBI control over Cooperative Banks.
Urban cooperative banks have always been under RBI regulations but rural cooperatives or District Cooperatives were under Nabard which will now be under the RBI control. I think this is a great move as there would be more transparency & system-oriented work would be implemented. The problems of DCCs or UCBs will stand reduced.
DCC /Rural cooperative Banking are the spine of rural economy this decision will help to strengthen rural economy.
Details of the ordinance will be definitely criticized once they are published but the questions that arise are:
Will this decision really strengthen the cooperative banking Movement? Or will it kill it?
What happens to the dual control of the Cooperative Ministry over the UCBs?
What will happen to the shareholders of cooperative banking?
Who will conduct the elections for the board of directors of cooperative banking?
Nagaland State Cooperative Bank, GM, Deb
The ordinance will give more power to RBI to exercise control on UCBs & MSCBs fostering a commercial bank outlook, instead of cooperative structure.
