The apex body of Urban Cooperative Banks and credit societies-Nafcub in collaboration with the Ministry of Cooperation is organizing a National Conclave of Scheduled & Multi State Urban Cooperative Banks and Credit Societies on 23rd June 2022 at Vigyan Bhawan, New Delhi.
The theme of the conclave will be “Future Role of Urban Cooperative Credit Sector”. This will be inaugurated by Union Home and Cooperative Minister Amit Shah and Union Minister of State for Cooperation BL Verma would be the guest of honor on this occasion, among other eminent dignitaries from the cooperative sector.
Talking to Indian Cooperative Nafcub President Jyotindra Mehta said that the urban co-op banks which have completed 100 years would be felicitated by the Union Minister. “They are living examples of the success of the co-op banking model”, stated Mehta.
It will be the first conclave in which Shah will participate, which is particularly designed for the cooperators associated with Scheduled & Multi State Urban Cooperative Banks. There are more than 1500 Urban Cooperative Banks in India and out of which 52 banks are scheduled banks.
Meanwhile, the preparations for making the event successful are going on. The invitation cards are being sent. Nafcub is planning to arrange more than 1000 participants and the senior officials of the Ministry of cooperation including the Secretary, Central Registrar, Joint Secretary, and others will grace the occasion.
There are many issues related to Urban Cooperative Banks including raising the capital from the market as Private and PSUs are doing, branch expansion, and others that need to be resolved sooner than later, said Jyotindra Mehta.
Mehta said that those UCBs which did business to the tune of Rs 750 crores in the past were accorded scheduled status automatically but now it has stopped. “We will request the Minister for the restoration of the provision”, underlined Mehta.
There is a need to amend Banking Regulation Act to permit all Financially Sound & Well Managed Urban Co-op Banks to finance Primary Co-op Societies engaged in Agro-Processing activities relating to Cotton, Fruits & Vegetables, Fisheries, Sugar, Cattle Feed, etc.
Others include, Sukanya Samriddhi Account – All Financially Sound and Well Managed UCBs be permitted to open Sukanya Samriddhi Account.
According to RBI data, the share of Urban Cooperative Banks in Deposits is Rs 5,01,178 crore and advances are Rs 3,05,368 as of 31st March 2020. There are 1539 Urban Cooperative Banks with a branch network of 11,195. The majority of UCBs are in the states of Gujarat, Maharashtra, Karnataka, and Tamil Nadu.
Nafcub has also invited heads of all the national level co-op federations in the country. “Most of them have confirmed their presence”, said Mehta to Indian Cooperative.