The Central Registrar of Cooperative Societies (CRCS), Shiv Pal Singh, on Tuesday held a meeting with senior leaders of Maharashtra-based Multi-State Cooperative Banks at the newly inaugurated office of the National Urban Cooperative Finance and Development Corporation (NUCFDC) in Mumbai.
The two-and-a-half-hour meeting focused on challenges faced by Multi-State Cooperative Banks and suggestions for improving provisions under the Multi-State Cooperative Societies Act.
Representatives of around 15 cooperative banks participated, including Saraswat Cooperative Bank, Cosmos Cooperative Bank, SVC Cooperative Bank, DNS Bank, Kalyan Janata Sahakari Bank, Janata Sahakari Bank, Pune, Solapur Janata Sahakari Bank, CitizenCredit Co-operative Bank and others.
One of the key issues raised was the arbitration and recovery process. One of the representatives pointed out that under the existing system, banks often have to approach different states for arbitration, resulting in delays and additional procedural difficulties.
Participants suggested that provisions relating to arbitration, recovery and enforcement under cooperative laws should be implemented more effectively so that disputes and recovery cases can be resolved faster. They also discussed the role and powers of the Deputy Registrar under Maharashtra’s cooperative law in recovery matters, and suggested that these provisions should be aligned with the MSCS Act to streamline certification and enforcement procedures.
The meeting also discussed digitisation of CRCS processes. Bank representatives suggested making applications and approvals related to changes in the area of operation, expansion to other states and other regulatory permissions completely online to make the process faster and more transparent.
The CRCS also discussed model bye-laws, with participants referring to the recent work of the committee constituted by the RBI on the subject.
The meeting provided a platform for direct interaction between the CRCS and cooperative bank leadership, with participants sharing practical difficulties and suggestions for improving the functioning of Multi-State Cooperative Banks.
