Page 21 - BANKING FINANCE JUNE 2016
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CO-OPERATIVE BANK NEWS
CO-OPERATIVE BANK
RBI exhibits power over Cooperative Banking Sector has a good future prospect
Gokul Co-operative Ur- in India
ban Bank Recently a discussion session was held GUCBF; R N Joshi, IAS (Retd), CEO, GUCBF,
about identifying the chal- Suma Varma, Principal CGM,
The Reserve Bank of India has exer- lenges and future prospects RBI. Nearly five hundred ex-
cised its pow- of the cooperative banking perts including bank profes-
ers over Gokul sector in the country by sionals and IT technocrats
Co-operative Gujarat Urban Co-opera- took part in the discussions.
Urban Bank, tive Banks Federation in Ahmedabad.
Secunderabad The session had discussions that dealt
and directed The high level discussion was presided by with the futuristic role of cyber secu-
Jyotindra Mehta, President, NAFCUB and rity and management technologies in
that without prior approval in writ- Chairman, GUCBF; V S Das, Advisor, the sector.
ing from the Reserve Bank of India
it cannot grant or renew any loans Reformation needed in Co-op banks: Sahakar exhorts Rajan
and advances after its closures of
business on April 04, 2016. Sahakar Bharati has welcomed the statement of the RBI Gover-
nor Raghuram Rajan on the need to streamline and strengthen
The direction further says the UCB the working of Co-operative. In a detailed comment on the story,
would not make any investment, in- the patron of Sahakar Bharati Satish Marathe has appealed to
cur any liability including borrowal of both the Union Govt and the RBI to review the working of the
funds and acceptance of fresh de- UCBs, DCCs and Apex Banks and prepare a Vision Document with
posits, disburse or agree to disburse a Roadmap for growth and development of the Co-operative Banking Sector.
any payment whether in discharge
of its liabilities and obligations. He pointed out that privatisation of the Co-operative Banking Sector is no solu-
tion to the constraints and challenges being faced by these Banks. Need of the
The direction doesn't denote cancel- hour is - Legal and Financial Empowerment of this Sector for all round growth.
lation of banking licence by RBI. The
bank will continue to undertake bank- Tamil Nadu to write off loans of farmers
ing business with restrictions till its fi-
nancial position improves. These di- Tamil Nadu government would write off all loans taken by
rections shall remain in force for a farmers from cooperative banks. Farmer leaders welcomed
period of six months from the close the announcement saying this was a step that would bring
of business on April 04, 2016 and are relief to farmers. Sources say sandwiched between the whims
subject to review from time to time, of state govts and the norm-binding dictates of NABARD the cooperative banks
RBI clarifies. face great difficulties. Experts say cooperative banks' NPA would unusually spike.if
this kind of decisions are further taken.
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