Breaking: Deogiri Sah Bank and Ahmednagar Merchant’s Co-op Bank secure Scheduled Status

In a significant boost to cooperative banking sector, the Reserve Bank of India (RBI) has granted Scheduled Bank status to Maharashtra’s based Deogiri Nagari Sahakari Bank and Ahmednagar Merchant’s Cooperative Bank.

The recognition came through a Gazette Notification issued on Wednesday, notifying the inclusion of both banks in the Second Schedule of the Reserve Bank of India Act, 1934.

Quoting the notification regarding Ahmednagar Merchant’s Cooperative Bank, the RBI stated, “In pursuance of clause (a) of sub-section (6) of Section 42 of the Reserve Bank of India Act, 1934 (2 of 1934), the Reserve Bank of India hereby directs the inclusion of ‘Ahmednagar Merchant’s Co-op. Bank Ltd., Ahmednagar’ in the Second Schedule to the said Act.”

Similarly, for Deogiri Nagari Sahakari Bank, the RBI noted, “In pursuance of clause (a) of sub-section (6) of Section 42 of the Reserve Bank of India Act, 1934 (2 of 1934), the Reserve Bank of India hereby directs the inclusion of ‘Deogiri Nagari Sahakari Bank Ltd., Chhatrapati Sambhajinagar’ in the Second Schedule to the said Act.”

It is gathered that both banks have a business of around Rs 3,000 crore, and their inclusion in the list of Scheduled Banks is being seen as a major achievement.

With this inclusion, both banks become eligible for a range of privileges under the RBI framework, including access to liquidity facilities, participation in the clearinghouse system, and the ability to lend to government projects. This enhances their operational scope, credibility, and business potential.

Notably, the RBI had not granted scheduled status to any Urban Cooperative Bank (UCB) for more than two decades. However, this trend has changed recently, first with Pune-based Vishweshwar Sahakari Bank receiving the status, and now these two Maharashtra-based UCBs following suit.

This revival is being attributed to the proactive efforts of the Union Ministry of Cooperation, particularly under the leadership of Union Home and Cooperation Minister Amit Shah, who has been pushing for reforms and recognition in the cooperative sector.

There are around 1,423 Urban Cooperative Banks in India, with a total business mix of approximately Rs 4.13 lakh crore. With the inclusion of three UCBs, Vishweshwar Sahakari Bank, Ahmednagar Merchant’s Co-op. Bank, and Deogiri Nagari Sahakari Bank, in the current financial year, the total number of Scheduled UCBs has now increased to 52.