Delegates from across the country who attended the 49th Annual General Meeting of NAFCUB on Friday urged the apex body to take up several pressing issues with regulators and concerned departments, particularly the matter of directors’ tenure in Urban Cooperative Banks (UCBs).
M.R. Venkatesh, Chairman of Sree Thayagraja Cooperative Bank, sought clarity on the RBI circular that restricts directors to a maximum of 10 consecutive years.
He said there are multiple interpretations of this rule and called upon NAFCUB to take up the issue with the authorities. Venkatesh also raised the demand for enhancement of DICGC cover from the present Rs 5 lakh to Rs 10 lakh, and urged that entire deposits of senior citizens be insured under DICGC.
Further, he proposed that the Credit Guarantee Scheme be extended to UCBs, with the annual premium borne by the cooperative banks themselves, similar to nationalized banks. He also suggested lowering the priority sector lending requirement from 60% to 50%, citing challenges faced by UCBs in urban areas.
Echoing similar sentiments, C.A. K.V. Venkata Satyanarayana, Director of Kakinada Cooperative Town Bank, said that the tenure of directors should remain a matter of members’ choice and not RBI regulation. “Most UCB directors continue to serve because of their goodwill, seniority, and contribution to the sector. Imposing limits will create unnecessary hurdles,” he argued, urging NAFCUB to pursue clarity on the issue.
Vijay Mohan, Chairman of Janata Cooperative Bank, Delhi, also supported the concerns, reiterating that long-serving directors are an asset to cooperative banks and that tenure restrictions would harm continuity in governance.
The collective call from delegates reflected a strong sentiment that NAFCUB must take up these issues with the Ministry of Cooperation, RBI, and other authorities to safeguard the operational freedom and stability of UCBs.
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To be rectified in the CBS of PACS COMPUTERIZATION.