Now Reading: Amit Shah asks coop banks to join umbrella body for tech support
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Amit Shah asks coop banks to join umbrella body for tech support
Amit Shah asks coop banks to join umbrella body for tech support
Union Cooperation Minister Amit Shah on Saturday urged urban cooperative banks (UCBs) to join the National Urban Cooperative Finance and Development Corporation (NUCFDC), the sector's umbrella body, for technology support and to…
The Story in Brief
Union Cooperation Minister Amit Shah on Saturday urged urban cooperative banks (UCBs) to join the National Urban Cooperative Finance and Development Corporation (NUCFDC), the sector's umbrella body, for technology support and to boost depositor confidence. Speaking at the 'Sahakar Nav-Kranti Melava' in Mumbai, Shah said the RBI has proactively helped UCBs recently, including liberalising branch openings and raising gold loan limits. He noted that NUCFDC will soon move from Delhi to Maharashtra, where 70% of the 1,400 UCBs operate. The sector holds deposits of about Rs 6 lakh crore, he added.
RBI Governor Sanjay Malhotra recently announced the resumption of UCB licensing after a two-decade pause, with a new on-tap framework requiring higher capital. Shah emphasised that small borrowers are the safest, citing a Gujarat scheme where 99% of Rs 2.5-lakh collateral-free loans were repaid.
The Indian Opinion
A familiar narrative pits the RBI as a tough regulator against cooperative banks. But Shah's speech flipped that: the central bank has been extending olive branches, resuming licenses, easing branch rules. The real test is whether the 1,400 UCBs will actually join the NUCFDC. If most stay out, depositor confidence will stay shaky. The number that joins in six months will settle the matter.
Sources (2): thehindu.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
