In a letter written to Ms Nirmala Sitharaman, Union Finance Minister, Vidyadhar Anaskar, Chairman of Maharashtra State Co-op Bank has demanded setting up an independent Advisory Committee for the implementation of amended Banking Act.
Anaskar writes that the said Advisory Committee should have representation of National Federation of Urban Co-operative Banks popularly known as NAFCUB and major State Federations of Co-operative banks in the States of Maharashtra, Gujarat, Karnataka & Andhra Pradesh.
“We also appreciate the fact that, while answering to the queries raised by the hon’ble members of both the Houses, you valued the importance of Co-operative banks in the Indian Banking System and strengthening the Rural Economy”, wrote Anaskar.
“You also assured to members that the amendments in the bill shall not affect the existing powers of the State Registrars under State Co-operative Laws and the Co-operative Principle ‘One person, one vote’ shall be preserved”, he went on.
The veteran co-operator added “Now, it is expected from the Reserve bank to play a crucial and instrumental role to fulfil the assurances given by your honour by bringing Co-operative Banks under the regulation of the B.R. Act similar to that of Commercial banks and come out with conducive policies so as to protect 100% interest of depositors, while preserving the Co-operative principles.”
Anaskar demands equal business opportunities to Co-operative banks on par with commercial banks, removing hurdles in the business growth of Co-operative banks and issuing similar guidelines, facilities, concessions on par with commercial banks on loans and advances and other related issues.
Earlier, Nafcub President Jyotindra Mehta had asked the Union Finance Minister Ms Nirmala Sitharaman to take the cooperative sector into confidence before issuing regulatory instructions in the wake of passage of the Banking Amendment Act passed this monsoon session.
Mehta argued that an impression is being created in public that their deposits kept with urban cooperative banks are at risk and therefore the amendment was needed. It bears recall that while Mehta is the President of NAFCUB, Anaskar is its Vice-President.