The Maharashtra Urban Cooperative Banks Federation has urged Union Cooperation Minister Amit Shah to allow urban cooperative banks (UCBs) to extend loans to sugar factories, dairy institutions, irrigation bodies, spinning mills and cooperative housing societies.
A delegation led by Nipun Kore submitted the demands during a meeting with Shah in Kolhapur, stating that expanded lending powers would strengthen financial support for the cooperative sector and improve access to institutional credit.
The federation also sought a review of provisioning norms introduced after the PMC Bank-Unity Small Finance Bank merger, reconsideration of the RBI’s capital requirement for opening new branches, and permission to reverse existing provisions to improve profitability.
Other suggestions included raising the PMEGP loan limit from Rs 50 lakh to Rs 1 crore and forming a study group to address legal inconsistencies affecting cooperative banks.