Now Reading: Amit Shah tells urban cooperative banks to trust RBI
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Amit Shah tells urban cooperative banks to trust RBI
Union Cooperation Minister Amit Shah on Saturday asked urban cooperative banks (UCBs) to see the RBI as a helpful regulator, not an adversary. Speaking at the inauguration of the NUCFDC building at…
The Story in Brief
Union Cooperation Minister Amit Shah on Saturday asked urban cooperative banks (UCBs) to see the RBI as a helpful regulator, not an adversary. Speaking at the inauguration of the NUCFDC building at BSE Mumbai, Shah listed relaxations such as liberalised branch opening, doorstep banking, demand draft facilities, and a dedicated nodal officer for UCBs, which hold over Rs 6 lakh crore in deposits. He also cited his own UCB's experience with small borrowers, claiming a repayment rate over 99% on Rs 2.5 lakh collateral-free loans. The RBI's recent move to advance on-tap licensing for UCBs, ending a two-decade pause, signals a thaw. Shah urged all 1,400 UCBs to join the umbrella body for technical and cyber security support, comparing the sector's growth potential to Amul.
The Indian Opinion
This speech tries to bridge a long-standing trust deficit between the RBI and urban cooperative banks. The narrative that the regulator is hostile to cooperatives is one-sided: the RBI has indeed eased branch norms, allowed doorstep banking, and promised on-tap licences after two decades. But the opposing fear that UCBs are inherently risky also has roots in past collapses linked to political control. The real test will be how many of the 1,400 UCBs actually join the umbrella body NUCFDC now, and whether the new licensing draft satisfies both safety and growth.
Sources (2): thehindu.com, deccanherald.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
