Patil applauds Mehta’s efforts; says things are changing

Speaking on the occasion of 47^th AGM of Nafcub, its legendary leader H K Patil applauded the efforts of Jyotindra Mehta and his team and said that with a changing approach of RBI and the Govt towards UCBs, the sector can breathe. Patil is currently a minister in Karnataka.

However, adding a note of caution Patil said that if UCBs have to contribute 8% to banking business by the year 2047, these changes are to be implemented in letter and spirit. “Our share is less than 3% as of now and to raise the bait we need a framework where we can grow unfettered”, underlined Patil.

“Now I think I can share with you what I told Mr Mehta earlier. I told him that no amount of effort will make any difference unless he uses his goodwill with Amit Shah”, said Patil expressing satisfaction with the resolution of several issues at the hands of the Amit Shah led Ministerial team.

It bears recalling that Nafcub has been able to resolve several vexing issues such as branch licensing, OTS, relief in PSL and many more between 46^th to 47^th AGM. Patil was hinting at the same without naming each of them.

“We can see a change in the attitude of RBI towards UCBs and it’s a matter of great satisfaction. We did not miss to voice our concern at any forum be it AGM or public meeting as to how the RBI is unfriendly and hostile to UCBs in the past”, recollected Patil.

“After Madhavpura, RBI stopped giving licenses, did not allow opening of ATMs and even stopped us from getting our banks computerized. Can you imagine a situation when everyone is asking us to computerize the bank and our Regulator is stopping us? Thank God all that has changed”, said Patil on the occasion.

But Patil still sounded wary of the RBI on the issue of its clandestine efforts to encourage UCBs to merge or convert to commercial entities. “It needs to stop this business of merging UCBs or liquidating them; stop this business of folding up a UCB”, thundered Patil.

Patil also took potshots at such cooperators who, out of their own selfish considerations, play along the RBI. “There are black sheep among us who do not care for depositors and collaborate with RBI in merging the bank or converting it. We have to be careful against such elements”, he warned.

He said that in 2005, there were more than 2100 UCBs and it has dwindled to 1541 today. Where did they vanish, he asked, hinting at the negative role played by the RBI in the past.

Patil underlined that the sector can grow only when it is treated with respect and dignity. “We indeed wish to achieve the goal of contributing 8% to banking business but for that we must be given strength and confidence.

Earlier, Nafucb President Jyotindra Mehta paid glowing tributes to Patil and said that he has never let any narrow considerations enter into co-operative politics and that is why he is respected across the board. Mehta also informed that Board members of Nafcub Board has members from all political parties including TMC and AAP and yet it works in unison.