Cooperative Banks

RBI allows minors above 10 years to open bank accounts independently

Minors of any age can open and operate savings and term deposit accounts through their natural or legal guardian

New India Co-operative Bank case: Depositors push for revival or merger

Depositors of scam-hit New India Co-operative Bank met RBI-appointed advisors and senior officials of the apex bank, demanding a concrete roadmap for the bank's revival or merger and better protection for depositors' interests, as per a release. The NICB Depositors' Foundation is demanding urgent measures to restore depositor confidence and alleviate the financial strain faced by thousands of account holders since RBI imposed restrictions on February 13, 2025. Mumbai Police has so far arrested eight persons in connection with the Rs 122 crore New India Cooperative Bank embezzlement case. The foundation president TN Raghunatha said a delegation of depositors met RBI-appointed advisors Ravindra Chavan and Ravindra Sapra at the bank's corporate office in Prabhadevi on Friday. During the discussion, the advisors offered a cautiously optimistic outlook on the bank's future, Raghunatha stated. "The advisors were positive about the prospects of reviving the bank. They confirmed that mult

RBI cancels licence of Ahmedabad-based Colour Merchants Co-op Bank

The Reserve Bank on Wednesday said it has cancelled the licence of Ahmedabad-based 'Colour Merchants Co-operative Bank' as the lender does not have adequate capital and earning prospects. Registrar of Cooperative Societies, Gujarat, has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, the Reserve Bank of India (RBI) said in a statement. On liquidation, every depositor would be entitled to receive the deposit insurance claim amount of his/her deposits up to a monetary ceiling of Rs 5 lakh only from the Deposit Insurance and Credit Guarantee Corporation (DICGC). RBI further said as per the data submitted by the co-operative bank, about 98.51 per cent of the depositors are entitled to receive full amount of their deposits from DICGC. As of March 31, 2024, DICGC has already paid Rs 13.94 crore of the total insured deposits based on the willingness received from the concerned depositors of the bank. Giving reasons behind cancellation

ED arrests ex-chairman of Karnataka co-op bank in Rs 63-crore fraud case

The Enforcement Directorate on Wednesday arrested a former chairman of a Karnataka-based cooperative bank for alleged financial irregularities of about Rs 63 crore at one of its branches. R M Manjunatha Gowda was taken into custody under the Prevention of Money Laundering Act (PMLA) and produced before a special court in Bengaluru, which sent him to ED custody for 14 days, the federal probe agency said in a statement. The arrest came a day after the ED carried out raids in Bengaluru and Shivamogga districts of Karnataka in the probe against the financial affairs of the Shimoga District Co-Operative Central Bank, City Branch. "Large-scale misappropriation of funds took place at the said branch which was orchestrated primarily by the branch manager, B Shobha, on the instructions of Gowda," the ED alleged. The two and their legal representatives could not be contacted for comment on the ED's charges. According to the chargesheet filed by Lokayukta Police (of Karnataka Police), the E

RBI allows Rs 25,000 withdrawal for New India Cooperative Bank depositors

50 per cent of depositors can withdraw their entire money

RBI supersedes New India Co-op Bank board after imposing biz restrictions

Alleged misappropriation of funds behind curbs

Decoded: Why RBI stopped New India Co-operative Bank's operations

The RBI has barred the New India Co-operative Bank Ltd from issuing loans or permitting withdrawals for six months

Customers panic as RBI bans withdrawals from New India Co-operative Bank

RBI imposed severe restrictions on New India Co-operative Bank, including a ban on withdrawals for six months, due to concerns over the bank's financial stability

RBI imposes curbs on New India Co-operative Bank on supervisory concerns

The bank's advances reduced to 11.75 billion rupees as of March 31, 2024, from 13.30 billion rupees a year earlier. Its deposits rose to 24.36 billion rupees from 24.06 billion rupees

Bank unions' Budget wishlist: Scrap tax on profits of cooperative banks

Asks for refinancing Rs 2 trn for non-recovery of farm loans

Govt launches 10k agri cooperatives, aims for 200k target in 5 yrs: Shah

Cooperation Minister Amit Shah launched 10,000 new multi-purpose Primary Agricultural Cooperative Societies (PACS) on Wednesday and asserted that the government will achieve its target of establishing 2 lakh such societies before the five-year timeline. Addressing the launch event, Shah said prosperity through cooperation cannot be achieved unless cooperatives function effectively at the panchayat level. "We have kept a target of setting up 2 lakh PACS in five years. I want to tell you that we will establish 2 lakh PACS before five years. In three months, we established 10,000 new PACS," the minister said. The initiative will be rolled out in two phases, with NABARD establishing 32,750 new M-PACS in the first phase, while NDDB will set up 56,500 dairy cooperatives and NFDB 6,000 fishery cooperatives. In the second phase, NABARD will create 45,000 M-PACS, NDDB will establish 46,000 dairy cooperatives and NFDB 5,500 fishery cooperatives. State governments will form about 25,000 new .

Strengthening cooperatives: Building capacity to increase opportunities

At this juncture, it is critical to extend support to cooperatives for their long-term survival and sustainability

India's cooperative sector may create 55-56 mn self-employment jobs by 2030

Maintaining growth rate at 5-6 per cent must to achieve goal, says report

Cooperative banks expected to be digitised by March 2025: Nabard chairman

National Bank for Agriculture and Rural Development (NABARD) Chairman Shaji K V on Tuesday said cooperative banks are expected to be digitised by March 2025 with a view to streamline operations and enhance the efficiency of these financial institutions. The Reserve Bank of India (RBI) has mandated all cooperative banks to adopt the Core Banking Solution (CBS) marking a significant step towards modernisation. "We are on behalf of central government undertaking digitisation of cooperatives. By March 2025 it will happen and by that time we will invite fintechs to work on that. We need a lot of technology solutions to work on these digitised database that we will have besides looking at transaction trails of digital platform," he said. Speaking at a CII event here, he said NABARD is proposing to set up a common shared services entity across the country for all rural cooperatives. "Both government and the RBI have agreed in principle for this entity. We jointly with the central governme

Govt to soon provide long-term finance via PACS to empower farmers: Shah

Cooperation Minister Amit Shah on Tuesday said the government will soon provide long-term finance through Primary Agricultural Credit Societies (PACS) to further empower the farming community. Speaking at the National Federation of State Co-operative Banks Ltd (NAFSCOB)'s Diamond Jubilee Celebration, Shah also directed the National Federation of State Co-operative Banks to prioritise making PACS more viable, transparent, and modern. The minister stressed the strengthening of the spirit of cooperation while expressing concern over the "dilution" of this spirit in state and district-level cooperative banks in many places. "We will provide long-term finance through PACS...We will start this soon. This will further empower farmers," Shah said, addressing NAFSCOB's Diamond Jubilee Celebration. Currently, PACS provide short-term finance to the farmers. Urging the NAFSCOB to play a bigger role in strengthening the cooperative banking sector, Shah said its work is "not just about holding

Norms for new capital instruments for Urban Cooperative Banks on anvil

Shaktikanta Das stated that to provide more flexibility, avenues for UCBs to raise capital, a discussion paper on capital-raising avenues will be issued for feedback from stakeholders

Govt to announce new cooperative policy in next 2-3 months: Coop secretary

The new National Cooperative Policy is almost ready and will be announced in the next 2-3 months, a top cooperation ministry official said on Monday. "We are in the last stage of finalising the new national cooperative policy. The policy will be announced in the next 2-3 months," Cooperation Secretary Ashish Kumar Bhutani told reporters on the sidelines of an event. A 47-member committee, headed by former Union minister Suresh Prabhu, has prepared the draft policy after consultation with stakeholders. "Now, further discussions are being held to finalise the policy," he added. The Secretary also informed that around 65,000 functional Primary Agricultural Cooperative Societies (PACS) will be computerised by February next year. The New National Cooperation Policy aims to realise the vision of 'Sahakar se Samriddhi', promoting the cooperative-based economic development model, strengthening the cooperative movement in the country and deepening its reach up to the grassroots.

Banking laws Bill extends tenure of cooperative banks' directors to 10 yrs

Changes to banking laws have a consumer tilt; no proposal that would allow change in ownership pattern of PSBs

RBI revises NPAs provision norms for co-op banks to ensure uniformity

Prescribes one-time measure for smoother transition to new regime

If depositors money not returned, people will lose trust in coop banks: HC

The Kerala High Court has said that unless the authorities take steps to ensure depositors' request for return of their money is honoured, people's trust in the cooperative banking sector would be "seriously diminished". Justice Devan Ramachandran said that people losing faith in the cooperative banking sector would "prejudice" the state deeply, "particularly when the present fiscal situation is not as satisfactory as it ought to have been". "... the return of fixed deposits by the cooperative banks is the sine qua non of a healthy financial scenario; and violations of it would certainly create unrest in the minds of persons and would impede them from relying upon such banks in future," the court said in its order of June 13. The observations by the court came while hearing a batch of petitions by depositors seeking return of their money in various cooperative banks in the state. The court, during the proceedings, noted that since the last hearing on May 21, there has not been enou