Responding to the public outcry over the Banking Ordinance, the Executive Committee of NAFCUB issued a statement demanding protection of the cooperative character of cooperative banks, among other things.
It bears recall Nafcub has itself been divided over the issue with a section led by its Vice President Vidyadhar Anaskar opposing certain provisions of the Ordinance. Anaskar also went public with his views, which was resented by some Board members who saw in it a deliberate bid to embarrass Jyotindra Mehta, the President.
Co-operators looked up to H K Patil, the senior most co-operator at Nafcub and the one who is respected across the Board for a way out. A votary of co-op character, Patil would never allow any dilution of the same, felt many.
Thus, the Executive Committee of NAFCUB comprising H K Patil, Jyotindra Mehta, K K Sharma, V V Anaskar, A M Hindasgeri, G Ramamoorthy and Laximi Das jointly issued a statement to the media on the issue.
The statement demands continuation and protection of cooperative character of cooperative banks, their democratic control and autonomous functioning, the “one member one vote” principle and its compatibility with the 97th Amendment of Constitution, at all times, by the Regulator.
“Cooperative banks have been in existence for well over a century and have been serving the less privileged sections of society with distinction as cooperatives. They value the sanctity of their cooperative identity that binds them to the grass roots and will not like to compromise to accept any move that may undermine their values”, reads the statement.
NACUB also strongly desires that RBI in its regulation of cooperative banks should ensure discontinuation of all the moves to privatise cooperative banks. The Ordinance should not undermine the continued existence of small urban banks through any process of compulsory consolidation, demanded the EC of Nafcub.
Last but not least, it asked for being provided with a level playing field for cooperative banks with commercial banks so far as banking operations are concerned.
The statement carries signatures of all the six mentioned above.
Knowledgeable sources said Nafcub has skilfully tried to wriggle out of the vexing situation. It has not commented on the Ordinance which has already been promulgated but merely asked for what it wants from the govt on the issue of RBI’s complete supervision of UCBs as envisaged by the Ordinance. The statement, however, carries all the points raised earlier by Nafcub Vice President Anaskar.