Sahkar Bharti urges RBI to extend timeline for Expert panel on UCBs

By Zee Business Bureau

Sahkar Bharti, the pan India organisation of Co-operators and Co-operatives, has requested the Reserve Bank of India (RBI) to extend the timeline for submission of views to the expert panel on Urban Co-operative Banks by at least 2 months. Citing the surge in Covid-19 infections, the letter said that it has not been possible for many stakeholders to submit their views to the committee. Letter signed by national general secretary of Sahkar Bharti Dr Uday Joshi and national president Ramesh Vaidya says, “The current situation still remains grim, hence, we earnestly appeal to you to extend the time frame for giving report, by at least 2 months. This will facilitate submission of feedback to the Committee.”   

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In February this year, RBI had formed the committee to  examine issues and provide a road map for strengthening of the primary urban co-operative banks under the chairmanship of former RBI Deputy Governor NS Vishwanathan. The terms of reference of committee was to take stock of the regulatory measures taken by the Reserve Bank and other authorities in respect of UCBs and assess their impact over last five years to identify key constraints and enablers, if any, in fulfillment of their socio-economic objective, to review the current Regulatory/Supervisory approach and recommend suitable measures/changes to strengthen the sector, taking into account recent amendments to the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies).

Also, to suggest effective measures for faster rehabilitation / resolution of UCBs and assess potential for consolidation in the sector, consider the need for differential regulations and examine prospects to allow more leeway in permissible activities for UCBs with a view to enhance their resilience, draw up a vision document for a vibrant and resilient urban co-operative banking sector that focuses on Principles of Cooperation as well as depositors’ interest and systemic issues.