Now Reading: Amit Shah says RBI proactively helped UCBs
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Amit Shah says RBI proactively helped UCBs
Union Cooperation Minister Amit Shah on Saturday urged urban cooperative banks (UCBs) to view the Reserve Bank of India from a "different viewpoint", saying the central bank has proactively helped the sector.…
The Story in Brief
Union Cooperation Minister Amit Shah on Saturday urged urban cooperative banks (UCBs) to view the Reserve Bank of India from a "different viewpoint", saying the central bank has proactively helped the sector. He spoke at the inauguration of a new office of the National Urban Cooperative Finance and Development Corporation (NUCFDC) in Mumbai.
Shah listed relaxations from RBI: liberalised branch opening, doorstep banking, issuing demand drafts and life certificates, and a dedicated nodal officer. He also noted that small borrowers are the safest segment for lenders, citing a scheme with over 99% repayment rate. NUCFDC, which has 690 members, will move its head office to Maharashtra.
The Indian Opinion
For decades, UCBs have faced suspicion over political links and lax governance, leading to tighter RBI oversight. Shah's speech rightly counters that narrative by highlighting concrete regulatory relaxations and the stellar repayment record of small borrowers. But the burden is now on UCBs to demonstrate transparency and professionalism. The upcoming on-tap licensing will be a real test of whether the sector can shed its old image and earn lasting trust.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
