Page 2 - Cooperative Banks

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

ESAF SFB to discontinue business correspondent services of ESMACO

Absorb 5,000 plus employees of BC on its rolls

RBI will not force mergers of urban co-operative banks: RBI board member

In 2021, an RBI's expert committee had suggested that weak UCBs would get a regulatory nudge to explore voluntary merger

Tamil Nadu govt waives Rs 6,000 crore cooperative bank gold loans

A total of 13.12 lakh people benefitted through Tamil Nadu Chief Minister M K Stalin's gesture of waiving Rs 6,000 crore cooperative bank loans on gold upto five sovereigns or less, the government said on Thursday. After Stalin became the Chief Minister he announced that gold loans taken from cooperative banks till March 31, 2021, would be waived and accordingly a government order was issued. The move fulfilled a promise he had made in the DMK poll manifesto, the release said. "About, Rs 4,818.88 crore has been waived to benefit 13,12,717 people who had availed the jewel loans," it said. Loans extended to the women self-help groups through cooperative banks upto March 31, 2021, amounting to Rs 2,755.99 crore was waived to benefit 1,17,617 SHGs. About Rs 35.85 lakh crore interest-free crop loans were extended through co-operative societies to 46,72,849 farmers in three years from May 2021 to December 2023. Among the numerous achievements, the statement recalled the state governmen

Urban co-operative banks not interested to become SFB: RBI's Satish Marathe

UCBs will also have to comply with the latest guidelines for on-tap licensing of SFBs in the private sector

RBI fines Mandi cooperative bank in Rs 6 lakh for not complying with rules

The Mandi Urban Co-operative Bank faced the RBI penalty based on the select inspection of the bank conducted with reference to its financial position as on March 31, 2022

RBI imposes Rs 59.90 lakh fine on Nashik's Janalaxmi Cooperative Bank

The Reserve Bank on Tuesday said it has imposed a penalty of Rs 59.90 lakh on Nashik-based Janalaxmi Cooperative Bank for non-compliance with regulations. The Reserve Bank found out that the bank had failed to constitute a board of management within the extended timeline granted by RBI, sanctioned credit facilities to its nominal members in excess of the prescribed limit, and, opened/renewed term deposits at interest rates higher than those offered by the State Bank of India for the same tenor. The bank was served with a show cause notice, after which the penalty was imposed in exercise of powers under the sections of the Banking Regulation Act, an official statement said. The central bank also imposed a penalty of Rs 28.30 lakh on Solapur Janata Sahakari Bank for appointing a member on its board of management who did not satisfy the 'fit and proper' criteria and failure to reconstitute the panel within the specified time and contravention of Supervisory Action Framework by the lend

RBI reconstitutes 'committee of advisors' of Abhyudaya Cooperative Bank

In November last year, RBI had superseded the Board of Directors of Abhyudaya Cooperative Bank for one year citing poor governance standards

Cooperation Minister Amit Shah launches National Cooperative Database

Cooperation Minister Amit Shah on Friday launched the National Cooperative Database which will help in the expansion and development of cooperatives in the country. There are more than 8 lakh registered societies in the country, with over 30 crore people connected with them. National Cooperative Database is a web-based digital dashboard wherein data of cooperative societies, including national/state federations, have been captured. It has collected or mapped information about 8 lakh cooperatives. Addressing the gathering at the launch function, Shah said that the Ministry of Cooperation is actively working to connect millions of people with the country's economy and development. He emphasised that the cooperative database will play a crucial role in the expansion of cooperatives, digital development, and delivery through databases.. He explained that data works to guide development in the right direction and will be highly effective in analysing gaps.. "We are experiencing a new

Shah launches NUCFDC, sets target to establish urban co-op bank in all town

Cooperation Minister Amit Shah on Saturday launched the National Urban Cooperative Finance and Development Corporation (NUCFDC) and asked the umbrella body to set up one urban cooperative bank in each town. He also said urban cooperative banks should upgrade themselves to provide ATM facility, credit/debit cards, clearing system, maintain SLR (statutory liquidity ratio) limit and refinancing. NUCFDC has received the RBI approval to function as a non-banking finance company and a self-regulatory organisation for the urban cooperative banking sector. After launching NUCFDC, Shah said, "After 20 years, NUCFDC has been established. This is the need of the hour. I am happy the RBI has given approval for this." The minister said he felt the absence of an umbrella organisation when he had an opportunity to work with National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) when there was a crisis in Gujarat. Some urban cooperative banks would not have suffered losses i

Shah launches NUCFDC, aims to set up 1 urban cooperative bank in each town

Cooperation Minister Amit Shah on Saturday launched the National Urban Cooperative Finance and Development Corporation (NUCFDC) and asked the umbrella body to set up one urban cooperative bank in each town. NUCFDC has received the RBI approval to function as a non-banking finance company and a self-regulatory organisation for the urban cooperative banking sector. After the launch, Shah said, "After 20 years, NUCFDC has been established. This is the need of the hour. I am happy the RBI has given approval for this." Urban cooperative banks have been operating in India for a long time, but could not grow rapidly even though they can play a key role in the country's economic growth, he said. The main objective of NUCFDC should be to help urban cooperative banks adhere to the Banking Regulations Act and bring professionalism in their work, the minister said. There are more than 1,500 urban cooperative banks with 11,000 branches and a deposit of Rs 5 lakh crore across the country, he ..

Cooperative sector vital in making India 3rd largest economy: Gujarat CM

Gujarat Chief Minister Bhupendra Patel on Monday said the cooperative sector is the best way to strengthen the rural economy and asserted it would play an important role in making India the world's third largest economy. He was speaking at an event in Deodar village in Gujarat's Banaskantha district after inaugurating and laying the foundation stones of various projects of Banas Dairy and Banas Bank. "Under the guidance of Prime Minister Narendra Modi, India has become the fifth largest economy in the world and is marching forward to be the third largest economy. I firmly believe the cooperative sector will play an important role in it," Patel said in his address. "Recently, the state government organised the 10th edition of Vibrant Gujarat Global Summit. Our focus was on emerging and future technologies such as green energy, hydrogen energy and semiconductor. At the same time, we are also focussing on the rural economy. The cooperative sector is the best way to strengthen the rural