Page 3 - Cooperative Banks

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In November last year, RBI had superseded the Board of Directors of Abhyudaya Cooperative Bank for one year citing poor governance standards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

BJP MLA Ramesh Jarkiholi booked for cheating Karnataka Cooperative bank

A case has been registered against BJP MLA and former minister Ramesh Jarkiholi and two others for violating the condition of the loan taken from the Karnataka Cooperative Apex Bank and its other banks of its group. According to the FIR, the general manager of the bank has charged that Soubhagya Laxmi Sugars Ltd Chairman and Managing Director Ramesh Jarkiholi and its two directors Vasant V Patil and Shankar A Pawade had borrowed a loan of Rs 232.88 crore loan from July 12, 2013 to March 31, 2017 from the Karnataka Cooperative Apex Bank and other banks of its group for the establishment and expansion of the firm. The accused had a balance of Rs 439.07 crore as on August 31, 2023, the complainant said. He added that there was a condition that till the loan was repaid, the firm was not supposed to change the managing director and its directors. Despite this condition, the accused appointed unknown persons in his place without informing the bank and "with an intention to cheat," the ..

India will be self-sufficient in pulses by December 2027, says Amit Shah

Cooperation Minister launched a tur dal procurement portal for farmers to sell their produce better

Cooperative sector sees opening of new avenues for expansion in 2023

The year 2023 saw a newly set up cooperation ministry coming out with several initiatives including model bye-laws for making PACS multipurpose and a national cooperative body to promote exports in a bid to give further boost to the cooperative movement and open new avenues for the cooperative societies for expansion. Set up in July 2021, the new ministry under the leadership of Amit Shah took historical steps for strengthening the cooperative sector in a short span of time, an official statement said. "To strengthen the cooperative movement, the Ministry of Cooperation has taken 54 major initiatives, through which all cooperative societies are getting new possibilities for their economic development and expansion," it said. Among the key initiatives taken this year, the ministry said it came out with a draft Model Bye-Laws for Primary Agricultural Credit Societies (PACS) on January 5, 2023, in order to increase their source of income and create new employment opportunities in more

RBI flags contagion risks on SFBs for high reliance on co-op banks deposits

"Lack of asset diversification coupled with geographical concentration"

RBI imposed monetary penalties worth Rs 40 crore on 211 entities in 2022-23

Out of 211, 176 penalties worth Rs 14.04 crore were alone imposed on cooperative banks, Bhagwat Karad told Lok Sabha on Monday

1,000 acres of defunct textile mills in UP to give way for new firms

These defunct units collectively owe liabilities of almost Rs 3,000 crore to different agencies, including financial institutions, and have little chances of revival

New national co-op policy calls for body to address financing needs

It has also called for rationalizing the process of winding up and liquidation of a cooperative where revival is not possible within a reasonable timeframe

Connected lending: Influence of business houses likely to be curbed

According to industry experts, the term 'Regulated Entities' includes not only banks but is also expected to include other lending agencies like NBFCs and Co-operative banks

CBI to probe multi-crore scam by three cooperative banks in Karnataka: CM

The Central Bureau of Investigation will probe into the financial irregularities that took place in three cooperative banks in Karnataka, the state government said on Saturday. In a post on 'X', Chief Minister Siddaramaiah said: "It has been approved to hand over the scams of Guru Raghavendra Cooperative Bank, Vasishtha Bank and Guru Sovereign Bank to the CBI." Thousands of depositors had invested their lifetime savings in the bank, keeping their dreams like marriage of children, buying their own house as a basis for their retirement life. All of them are clueless about their future life due to bankers' fraud, the chief minister said. "Even when I was the Leader of the Opposition earlier, I was vocal inside and outside the House and participated in protests to get justice for the defrauded depositors. Even then, it was our insistence that this case should be investigated by CBI," he stated. "I have seen the frustration and suffering from those who have lost their deposit money. For

Excess SLR holdings reason for RBI's comfort on Abhyudaya Co-operative Bank

The gross NPA ratio of the bank is around 12 per cent, and the regulator aims to bring it down to 8 per cent through sustained recovery efforts

Business as usual for Abhyudaya Cooperative Bank on Tuesday: Official

On Sunday, 21 branches of the bank were opened which did not see any unusual rush

Deposits safe, RBI confident of fixing Abhyudaya Co-op Bank's governance

The multi-state cooperative lender, which was established in 1965, was under the regulatory watch for about two years, sources said