The National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) has written to 42 shortlisted cooperative credit societies, urging them to apply for a banking license from the Reserve Bank of India (RBI).
This move follows the formation of a Task Force (TF) under the chairmanship of D. Krishna by NAFCUB, at the instance of the Ministry of Cooperation, Government of India. The Task Force has been assigned the responsibility of studying the “transformation of urban cooperative banks and credit societies.”
As part of its mandate, the Task Force conducted a preliminary assessment of medium and large credit societies across the country. The evaluation was based on parameters such as capital base, deposit size, and key financial ratios. Following this analysis, the TF identified 42 societies with the potential to be successfully converted into Urban Cooperative Banks (UCBs).
In its periodical reports submitted to the Ministry of Cooperation, the Task Force shared the list of these credit societies. Acting on the recommendations, the Ministry directed NAFCUB to formally invite the shortlisted societies to submit their applications for a banking license. Among those identified is the Select Cooperative Thrift & Credit Society.
According to the official communication, a copy of which is available with the Indian Cooperative, NAFCUB has requested these societies to pass a board resolution and get it ratified by their General Body, confirming their intention to seek a banking license.
Following this, the societies have been advised to write to the RBI Central Office, with a copy to the respective Regional Office, expressing their interest in becoming a UCB.
They have also been encouraged to engage a qualified consultancy firm to prepare and submit their application in Form III A, as per Rule 6(a) of the Banking Regulation (Cooperative Societies) Rules, 1966, and Section 22 read with Section 56 of the Banking Regulation Act, 1949.
NAFCUB has assured the societies of necessary guidance and support during the process.
Sources said the shortlisted societies include Dharmapeth Mahila Multi-State Credit Co-op, Aditya Anagha Multi-State Credit Cooperative, Shri Beereshwar Cooperative Credit Society, Citizen Cooperative Society, Hyderabad, Godavari Urban Multi-State Credit Cooperative, among others.