The entire cooperative fraternity was up in arms against the earlier circular of RBI in which it was said that the balances kept by DCCBs with SCBs as also term deposits with public sector banks will be eligible for being reckoned for SLR purpose upto March 31, 2015 and will not be eligible for being reckoned for SLR purpose w.e.f. April 1, 2015 was considered as a death knell to SCBs and DCCBs.
The apex bank has now extended the deadline to March 2017, instead of March 2015. These cooperative banks could now keep 5 percent and 10 percent SLR in March 2015 and in 2016 respectively.
The banks presently have to maintain 4 percent SLR while other mainstream banks maintain 22.5 percent SLR.
The apex body of state cooperative banks NAFSCOB had written a letter to RBI governor Dr. Raghuram Rajan on the issue the Banking Laws (Amendment) Act 2012 – Amendments to Section 18 & 24 of Banking Regulation (B.R.) Act, 1949 (AACS).
The MD said “though there will be additional burden on the non-Scheduled SCBs and all DCCBs – a matter of concern to many DCCBs due to increase in CRR level, the increase may not really affect their bottom line to a greater extent for the time being. However, any increase in future to keep at par with Commercial Banks without payment of interest will create problems for these Banks as they do not have adequate resources to cope with the changes from time to time.”
Later several state ministers also joined the chorus against the RBI circular. The present case once again re-affirms the fact that if cooperative fraternity unites and acts as lobby like industries cooperative movement can grow unhindered.