Union Home and Cooperation Minister Amit Shah on Wednesday said that the Reserve Bank of India (RBI) has granted relaxation to specified borrowers such as the Indian Farmers Fertiliser Cooperative Limited (IFFCO) to raise incremental working capital funding beyond the earlier cap of 50 per cent from banks.
The Minister further informed that, with a view to expanding the role of cooperative banks in the financial ecosystem, the Ministry of Cooperation has taken steps to facilitate their entry into the insurance sector. Accordingly, the Ministry has requested all States and Union Territories, along with cooperative banks, to associate as Corporate Agents for undertaking insurance business.
He said cooperative banks are being encouraged to partner with the IFFCO joint venture insurance company, which would help deepen insurance penetration, diversify income streams of cooperative banks, and strengthen the cooperative sector in line with the vision of Sahakar se Samriddhi.
