Urban Co-Ops Set To List Grievances At Fm Meet

Urban co-operative banks (UCBs) from across the country will take up the issue of discriminatory treatment meted out to them by the authorities when they meet finance minister Jaswant Singh on July 27.

Among the issues that will come up discussion are their exclusion from the debt recovery tribunals and the new ordinance pertaining to enforcement of securities.

The FM has already appointed a committee to look into specific issues of the sector and recommend solutions within a month.

At the meeting of the consultative committee of Parliament on finance held on July 12 in Delhi under the chairmanship of the FM, several members of Parliament voiced their concern about the various aspects of banking policy including the issues facing UCBs.

 

Singh, after hearing out them, appointed E K Thakur, MP and principal advisor of Saraswat Co-operative Bank, as chairman of a committee that will hold consultations with UCBs, MPs and the minister of state for finance, Anant Gite. The committee is expected to submit its report to the finance minister in a month.

According to D R Shirdokar, managing director, Saraswat Co-operative Bank, the problems being faced by UCBs, among others, include cheques, demand drafts, bank guarantees and bank orders issued by them not being honoured by certain oil companies and banks; restrictions placed on them in their treasury operations; the ban on inter bank deposits by the central bank; and exclusion of the banks from the recent ordinance on enforcement of securities.

"When prudential norms as applicable to the mainstream banks are made applicable to the co-operative banks then why should we be discriminated against?" feels Satish Marathe, CEO, Janakalyan Sahakari Bank.