Breaking: RBI grants Vishweshwar Sahakari Bank Scheduled Bank status

In a major boost to the cooperative banking sector, Pune’s one of the leading Urban Cooperative Banks (UCBs)- Vishweshwar Sahakari Bank has been granted the status of a Scheduled Bank by the Reserve Bank of India (RBI).

The announcement came on Tuesday, triggering widespread jubilation among the urban cooperative banking fraternity across the country, as the RBI granted Scheduled Bank status to a UCB after a gap of more than two decades, marking the revival of a long-awaited process.

Talking exclusively to Indian Cooperative, Vishweshwar Sahakari Bank Chairman Anil Gadve expressed his excitement over the recognition. “Becoming a Scheduled Bank is a significant milestone for us. It reinforces our relentless efforts to serve our customers with dedication while validating the trust and faith they have consistently placed in us,” he said.

Gadve revealed that the bank had applied for scheduled status nearly two to three years ago, and it was only after persistent follow-ups, particularly over the past year, that the dream materialized.

“We believe this is a turning point in our journey. It will not only help us grow the bank further but also open up multiple avenues for expansion, partnerships, and participation in government business,” he added.

With a business mix of over Rs 3,800 crore, a net profit of Rs 17 crore, and a network of 30 branches, Vishweshwar Cooperative Bank has already established a strong foothold in urban Maharashtra. The bank now plans to expand its presence in rural areas, leveraging its new scheduled status to access more opportunities in the banking and financial services sector.

It is worth noting that, after a gap of more than two decades, the RBI had not granted scheduled status to any cooperative bank. However, thanks to the renewed push by the Union Ministry of Cooperation particularly under the leadership of Union Home and Cooperation Minister Amit Shah, the process has now been revived.

This revival follows the Central Government’s 2023 decision to allow Tier 3 and Tier 4 urban cooperative banks to be included in Schedule II of the RBI Act, 1934, thereby making them eligible for scheduled status.

Several other prominent UCBs have also shown interest in achieving scheduled bank status, including Mumbai-based Model Cooperative Bank, Kurmanchal Sahakari Bank (Uttarakhand), Pune People’s Cooperative Bank, Agrasen Cooperative Urban Bank (Telangana), Visakhapatnam Cooperative Urban Bank, and Deogiri Nagari Sahakari Bank.

The approval granted to Vishweshwar Cooperative Bank is expected to pave the way for more such recognitions in the near future.

The scheduled bank status not only enhances a bank’s prestige but also enables it to access funds at lower rates from the RBI, participate in the clearinghouse system, and lend to government projects—thus significantly improving its business potential.

As on 31st March 2024, out of 1,423 Urban Cooperative Banks, 49 were scheduled banks, collectively having a total business mix of around Rs 4.13 lakh crore.