The Kochi’s (Kerala) office of Reserve Bank of India called a second quarterly meeting of federation and UCBs of southern zone, in which Ms. Scenta Joy, who was recently appointed as the nodal officer for all policy related issues to Urban Cooperative Banks, was also present.
The meeting was attended by the Andhra Pradesh State Cooperative Urban Banks and Credit Societies Federation Secretary Raghavendra Rao, Telangana State Cooperative Urban Bank Federation Vice-President Madana Gopala Swamy, Karnataka State Cooperative Urban Bank Federation Director Rudregowda Patil, Kerala Urban Cooperative Banks Federation General Secretary K Jayavarma, CEOs of Urban Cooperative Banks of Kerala and others.
On this occasion, the representatives from different UCBs federations raised several issues pertaining to urban cooperative banks that were tabled before the RBI officials to be resolved at the earliest.
While talking to the Indian Cooperative correspondent Andhra Pradesh UCBs and Credit Societies Federation secretary Rao said, “We have raised many issues pertaining to UCBs, which need to be resolved for the smooth functioning of cooperative banks”.
“The issues raised included, removing priority sector housing loans from regulatory restrictions, need for an appellate authority for doing the independent assessment on the need for and the quantum of punishment, need for separate department for dealing with UCBs at the RBI’s regional office and central office, need to give more decision-making power to regional office, non-implementation of Standing Advisory Committee Decisions and others.
During the meeting, Karnataka State Cooperative Urban Bank Federation Director Rudregowda Patil also raised several important issues. He demanded giving permission to UCBs under SAF to lend to secure sectors like gold loan, housing loan, education loan and others.
Besides, he asked to revise the criteria of net NPA from less than 3 percent to 5 percent to classify an UCB as FSWM. The restrictions of UCBs under SAF such as declaration of dividend, mobile banking may be revisited, Patil added in the meeting.
“The prudential limit of Rs 0.50 lakh and R 1.00 lakh per nominal member for loans may be increased suitably keeping in mind the inflation and decline in purchasing power of rupee since the date of last revision”, he demanded.
