Page 20 - Banking Finance July 2017

CO-OPERATIVE BANK NEWS

CO-OPERATIVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

Mapusa co-operative bank seeks permission to Co-operative banks to is-
monetise assets sue mobile wallets
Mapusa Urban Cooperative Bank has sought permission from the Reserve Bank The Reserve Bank of India (RBI) has
of India(RBI) to monetise assets or sell properties at- allowed co-
tached from defaulters that are totally worth over Rs operative
60 crores, said Ramakant Khalap, one of the bank's di- banks, who
rectors. are permit-
"Mapusa Urban is considering various options, the first ted to install
one being a proposal to monetise assets. We have commercial spaces in Panaji ATMs and is-
and Mapusa and on the books, their value is just Rs 25-30 lakh, but the actual sue debit cards, to also issue Prepaid
value will be around Rs 6 to Rs 7 crore. We have asked RBI to allow us to show Payment Instruments (PPIs) like mo-
this as assets," Khalap told reporters. bile wallets. In a notification issued
late on Thursday, RBI laid down strict
Farmers' loan waiver plans in Maharashtra norms and conditions to be followed
by co-operative banks before permit-
DCCBs drowning under dues from farmers for Rs. 8839.59 crores are now insist-
ting them to issue wallets for utility
ing on loan clearance by waiver scheme. 31 DCCBs give
out about 30% to 35% of all agricultural loans to farm- bill payments and other activities up
ers in the state. Over the years, Rs22,808 crore was to a limit of Rs 10,000.
the outstanding amount, and of this, DCCBs recovered "It has been decided to permit all li-
Rs13,699 crore leaving them with dues of Rs8,839.59 cenced co-operative banks having
crore till June 30, 2016. If this year is counted, the out- their own ATM network to issue semi-
standing amount could be Rs3,000 crore more. The Jalgaon district cooperative closed PPIs," RBI said in a statement.
bank, under former revenue minister and BJP leader Eknath Khadse, has the most "This is subject to the compliance
amount due - Rs1,005.86 crore; Rs952 crore is due at Yavatmal district bank, with eligibility criteria and other
and Rs827.64 crore at Nashik district cooperative bank. The DCCBs disbursed guidelines as prescribed by Depart-
Rs15,000 crore as agriculture/crop loan in 2016-17, while the target for 2017- ment of Payment and Settlement
18 is Rs17,000 crore. Systems (DPSS), RBI from time to
The government has set the target for agricultural loan at Rs54,000 crore this year, time." The apex bank also laid down
and the share of private and nationalised banks was to be Rs37,000 crore. "The state various criteria like banks should be
will have to first clear overdues of DCCBs. Private and nationalised banks may be in core banking or CBS compliant, with
a position to stagger the dues over the years against a government guarantee, but net non-performing assets being less
DCCBs do not have that kind of liquidity to disburse fresh loans if dues are not recov- than 3 per cent and also being prof-
ered," said ML Sukhdeve, chairman, Maharashtra State Cooperative Bank. itable in the previous financial year.

20 | 2017 | JULY | BANKING FINANCE

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