On the occasion of Nafcub’s AGM organized at the NCUI Auditorium, delegates associated with UCBs coming from across different parts of the country highlighted some of the burning issues which were becoming hurdles to running a banking business and sought the help of Nafcub in this connection.
Some complained that the regulator RBI is treating urban co-op banks stepmotherly, whereas several cooperators raised concerns about the establishment of Umbrella Organization for this sector.
Some of them asked Nafcub on behalf of the co-op banking sector to file a petition against the RBI circular related to guidelines for the appointment of MDs and WTDs in Co-op banks.
One of the delegates from Gwalior Nagrik Sahakari Bank, Chairman, Vinod Suri said, “We are working in a challenging environment. For running the business, we are having limited resources but still, we are progressing. RBI never encourages people to perform better. The regulator keeps on harassing us by sending useless notifications”.
While attacking Nafcub, a delegate from Delhi UCB Federation Chairman Vijay Mohan said, in six states, urban cooperative banks have independently filed petitions against the RBI guidelines for appointment of MDs/WTDs in co-op banks in the high court but our national-level federation-Nafcub failed to take a call on the matter on behalf of the co-op banking sector.
Visakhapatnam Cooperative Bank Chairman Raghavendra Rao raised many pertinent issues related to the co-op banking sector. He informed the gathering that Karnataka High Court has stayed the RBI circular of constituting BoM for co-op banks but when I asked the RBI local officer to comment on it, he said, “this is applicable only to the banks located in Karnataka”. So, I request Nafcub to look into the matter.”
Some delegates asked Nafcub to write a letter to the RBI to increase the limit of housing loans given by co-op banks. The discussions about the new expert committee formed by RBI were also held.
