In a significant move to strengthen the cooperative banking sector, Union Ministry of Cooperation Secretary Ashish Kumar Bhutani held a high-level meeting with Sanjay Malhotra, Governor of the Reserve Bank of India, at the RBI Headquarters in Mumbai on Thursday.
The meeting focused on key issues concerning the urban and rural cooperative banking sector, with both sides engaging in constructive discussions to address long-pending matters and enhance regulatory coordination.
It is gathered that the meeting was very fruitful and lasted for around an hour, during which several important issues were discussed in detail.
Key issues that came to the centre stage included the licensing of new Urban Cooperative Banks (UCBs), particularly the draft guidelines issued by the Reserve Bank of India, which prescribe a minimum share capital of over Rs 300 crore, considered significantly high. It was emphasized that there is a need to reconsider these draft norms for licensing new UCBs.
Another important issue discussed was the review of exposure norms for rural cooperative banks, which have not been revised for many years. Additionally, issues related to IDR were also taken up for discussion, with indications that RBI is currently reviewing and examining the matter.
The interaction assumes significance as the cooperative banking sector continues to play a crucial role in financial inclusion, particularly in rural and semi-urban areas.
The Ministry and RBI are working in close alignment to ensure that cooperative institutions are better equipped to meet growing credit demands while maintaining financial stability.
Senior officials accompanying the Secretary included Pankaj Kumar Bansal, Additional Secretary & Managing Director, National Cooperative Development Corporation, along with Joint Secretary Raman Kumar and Director Kumar Ram Krishna.
Earlier in the day, Bhutani also met S. C. Murmu, Deputy Governor of RBI, where detailed discussions were held on strengthening cooperative banking operations and streamlining credit delivery systems.
These back-to-back engagements highlight a coordinated push between the Ministry of Cooperation and RBI to build a more resilient, inclusive, and growth-oriented cooperative banking ecosystem, reinforcing the broader agenda of cooperative-led economic empowerment.