In order to clear the lurking doubts in the minds of co-operators in the wake of new Ordinance bringing UCBs under total supervision of RBI, Sahakar Bharati organized a successful Webinar on Tuesday.
The panel had an impressive list of speakers who dwelt on length on the nitty-gritty of the new development and cleared several doubts from the minds of participants. Most of all, they stressed that the new Ordinance would not only help UCBs’ professionalize themselves but also open avenues of Capital -a requirement that bogged the sector for too long.
Speakers included RBI Central Board Director Satish Marathe, Nafcub President Jyotindra Mehta, Jalgaon Janata Sahakari Bank Chairman Prof. Anil Rao, among others. On this occasion directors, chairmen and other representatives of UCBs were connected through several social media platforms.
Speakers on the occasion felt that the Reserve Bank of India should understand the cooperative spirit and now it’s time for UCBs across India to upgrade themselves with the latest technology and initiate professionalism in their activity. Besides, speakers also made clear that the RBI or the central government has no intention or objective to privatize cooperative banks.
Sharing his thoughts Nafcub President Jyotindra Mehta said, “With the promulgation of the ordinance several questions have been raised in the minds of representatives of UCBs and which need to be cleared without any loss of time. There is provision of raising capital for the cooperative banks. Now UCBs should upgrade their existing technology and ensure customer satisfaction”.
“RBI should understand the cooperative spirit and regulate under this framework. We all have to stand together. After the establishment of Umbrella organization for UCBs will find a way to address the grievances of co-op banks and resolve them sooner than later”, Mehta added.
Another speaker, RBI Central Board Director Satish Marathe on this occasion recalled his meeting with RBI former governor and then Union Finance Minister Arun Jaitley where both had denied government or RBI intending to privatize co-op banks. Even in a parliamentary committee meeting Patel had called for giving full regulated power for the growth of the urban cooperative banking sector”, Marathe recalled.
“We are sure that the RBI or the central government would not change the fundamental principle of ‘One Person One Vote’. UCBs in the coming days can raise capital for cyber security, improving infrastructure and others. We have seen several UCBs not working under the prescribed norms of RBI and there are over 70 UCBs which are in the ‘D’ category and around 200 banks are in the ‘C’ category”, Marathe underlined.
On the occasion, Jalgaon Janata Sahakari Bank Chairman Anil Rao said, “Keeping in mind the cooperative spirit only, RBI should regulate or supervise the Urban Cooperative Banks. We have seen after liberalization the control of RBI on UCBs was not strict for a few years”. Over 10 percent of UCBs are in bad shape but 90 percent of UCBs are doing praiseworthy jobs. I suggest there is a need for a formal mechanism to ensure mutual understanding between RBI and UCBs”, he said while concluding his address.
RBI CGM Retd. Prem Arora emphasized on the historical background of the Urban Cooperative Banking Sector. He also highlighted the recommendations of the Malegam and R Gandhi committee and several sections of the Banking Regulation Act.
The webinar was hosted by Sahakar Bharati National General Secretary Uday Joshi.