Page 18 - Banking Finance April 2025

Sahakari Bank, along with representa- Urban co-operative banks
tives from NAFCUB and NUCFDC. Attention Subscribers
should be mindful of their
RBI Deputy Governors M. Rajeshwar Please renew your Subscription of The
Rao and Swaminathan J. and executive responsibilities: RBI Gov- Insurance Times Journal to receive
directors also participated. The inter- ernor copy of the journal uninterruptedly.
action is part of the RBI's regular en- You can now pay by GPAY, Phonepe,
While the RBI will continue to support
gagement with its regulated entities, Paytm, Amazon, ICICI Pay, BHIM UPI
focusing on strengthening cooperation the urban cooperative banking sector
and addressing sector-specific concerns in its growth ambitions, the banks need
in the UCB ecosystem. to be mindful of their responsibilities,
particularly in view of the trust re-
RBI Has Canceled 58 Co- posed on them by the depositors, said
operative Bank Licenses Governor Sanjay Malhotra.
The observation comes in the backdrop
Since 2020 of Mumbai-based New India Coopera-
Since 2020, the Reserve Bank of India tive Bank (NICB) getting into trouble
(RBI) has canceled licenses of 58 Urban last month after a Rs. 122 crore fraud
Co-operative Banks (UCBs), Union Min- was detected.
ister of State for Finance Pankaj
Chaudhary informed Parliament. This The RBI has superseded NICB's board for
12 months with effect from February 14
follows the Banking Regulation (Amend-
ment) Act, 2020, which expanded RBI's due to certain material concerns ema-
powers over cooperative banks. nating from poor governance standards
observed in the bank. Further, it ap-
The amendment introduced stricter pointed an administrator to manage the
governance norms related to capital affairs of the bank during this period.
adequacy, audits, and reconstruction.
The Deposit Insurance and Credit At a meeting held with the Chairmen,
Guarantee Corporation (DICGC) pro- Managing Director & Chief Executive
vides up to Rs. 5 lakh insurance per Officers of select urban cooperative
depositor. The insurance cover, raised banks (UCBs) across all Tiers operating
from Rs. 1 lakh in 2020, applies to all in different parts of the country,
types of deposits. Future revisions will Malhotra stressed the importance of Sashi Publications Easy Payment
depend on DICGC's financial health and maintaining high standards of customer Modes :-
broader banking considerations. service to build and retain trust. i) UPI ID: SASHIBOOKS@KOTAK
ii) GPAY: 9830171022@okbizaxis
RBI Retains Food Credit Allocation for Co-op Banks iii) PAYTM: 9830171022@paytm

After Ministry Intervention iv) NEFT: Current A/C
402120110000327 of 'SASHI
The Reserve Bank of India (RBI) has maintained the food credit consortium PUBLICATIONS PRIVATE
arrangement for 30 State Cooperative Banks (StCBs) at the previous year's
level, following intervention by the Ministry of Cooperation. The total allo- LIMITED, Bank of India, VVK
cation has increased from Rs. 53,550 crore in FY2024-25 to Rs. 54,694 crore Road Branch., Kolkata, India,
in FY2025-26. IFSC Code : BKID0004021
v) Credit Card:
Notable allocations include Rs. 1,500 crore to Bihar State Cooperative Bank,
www.sashipublications.com
Rs. 2,200 crore to Chhattisgarh State Cooperative Bank, and Rs. 750 crore
to Andhra Pradesh State Cooperative Bank. The decision aims to support For any query please call
cooperative banks in food procurement operations and strengthen their role 9073791022/9883398055
in rural credit and agricultural supply chains across India. www.sashipublications.com

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