Page 19 - Banking Finance March 2022

CO-OPERATIVE BANK NEWS

Co-Operative Bank News

RBI imposes restrictions The restrictions would remain in force created in July 2021 to strengthen the
for six months and are subject to re- cooperative movement in the country.
on Indian Mercantile Co- view.

operative Bank Ltd NCUI hails merger of PMC
New schemes under coop-
The Reserve Bank said it has imposed BANK with Unity SFB; bats
several restrictions on Indian Mercan- eration ministry to be
tile Cooperative Bank Ltd, Lucknow, for security of depositors'
including a cap of Rs 1 lakh on with- rolled out from next fiscal: money
drawals. The restrictions came into Amit Shah Welcoming the merger of debt-ridden
force from closure of business hours on The government has envisaged the in- Punjab and Maharashtra Cooperative
January 28, 2022. troduction of new schemes to (PMC) Bank with Unity Small Finance
In a statement, RBI said the Lucknow- strengthen cooperative societies from Bank (Unity SFB), cooperative body
based co-operative bank will not, with- the financial year 2022-23 onwards, NCUI said that it needs to be ensured
out its prior approval, grant or renew Union Cooperation Minister Amit Shah that depositors' money is secure.
any loans and advances, or make any told Parliament. In his written reply to On January 25, the union finance min-
investment. the Upper House, Shah said that cur- istry had approved the merger of PMC
rently, there is only one scheme,
"In particular, a sum not exceeding Rs Bank with Unity SFB, protecting it from
namely the Central Sector Integrated
1 lakh of the total balance across all liquidation and bringing relief to all
Scheme on Agricultural Cooperation
savings bank or current accounts or stakeholders. In a statement, National
any other account of a depositor, may (CSISAC), for the promotion and devel- Cooperative Union of India (NCUI)
be allowed to be withdrawn...", sub- opment of the cooperative sector President Dileep Sanghani welcomed
ject to certain conditions, it added. across the country. the merger of PMC Bank with Unity
Under CSISAC, assistance is given to
The central bank, however, added the Small Finance Bank.
National Cooperative Development
directions should not per se be con- However, he said that "it has to be
Corporation (NCDC), Cooperative Edu-
strued as a cancellation of the banking ensured that the depositors' money is
licence by the RBI. cation and Training; and National Co- secure, and they are able to get back
operative Federation, he said.
"The bank will continue to undertake the money," an official statement said.
banking business with restrictions till "With the formation of a new ministry, Former NCUI President and Coopera-
further notification from RBI. The Re- the introduction of new schemes from tive Bank of India Chairman G H Amin
serve Bank may consider modifications the financial year 2022-23 onwards is also welcomed the move saying, "This
of these Directions depending upon envisaged," Shah said. is the first cooperative bank which has
circumstances," it noted. The new Ministry of Cooperation was been merged with a private bank. Now

BANKING FINANCE | MARCH | 2022 | 19