UCBs must be mindful of responsibilities: RBI Governor Sanjay Malhotra

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday asked the Urban Cooperative Banks (UCBs) to be mindful of their responsibilities, especially in view of the trust reposed on them by depositors.

 

He said that the UCBs must maintain high standards of customer service to build and retain trust.

 

RBI governor’s observation assumes significance in light of the central bank’s restrictions on deposit withdrawals on Mumbai-based New India Co-operative Bank. Financial irregularities at the bank were first detected during an internal audit that revealed significant cash shortages at the bank’s branches in the city.

 

The governor, in his interaction with managing directors and chief executive of select UCBs, said banks are playing an important role in serving people at the grassroots level and deepening financial inclusion. The RBI will continue to support the sector in its growth ambitions.

 

 

UCBs were also advised to ensure that they remain operationally resilient, including against IT and cyber-related risks, RBI said in a statement.

 

The meeting was a part of the RBI’s series of engagements with its regulated entities.

 

The representatives from industry bodies viz., National Urban Cooperative Finance and Development Corporation Limited (NUCFDC) and National Federation of Urban Co-operative Banks & Credit Societies Limited (NAFCUB) also participated in the meeting.

 

RBI Deputy Governors M Rajeshwar Rao and Swaminathan J, along with executive directors-in-charge of regulation and supervision also attended the meeting.