Page 16 - Banking Finance December 2022

maintain a minimum CRAR (Capital to In a separate reply on the performance The bill also seeks to strengthen gov-
Risk Weighted Assets) of 9 per cent on of Primary Agricultural Credit Societies ernance, reform the electoral process,
an ongoing basis, Tier-2 to -4 UCBs shall (PACS), Shah said 48,907 PACS were in improve the monitoring mechanism,
maintain a minimum CRAR of 12 per profit, while 24,243 of them were in and ensure ease of doing business in
cent on an ongoing basis. loss as of March 2020. multi-state co-operative societies. Op-
position MPs had alleged that the
All unit UCBs and salary earners' UCBs There are nearly 1 lakh PACs, Large
measure would encroach on the rights
(irrespective of deposit size), and all Area Multipurpose Societies (LAMPS)
other UCBs having deposits up to Rs. and Farmers Service Societies (FSS) in of state governments.
100 crore are classified as Tier-1 UCBs. the country, out of which data was
submitted by 73,350 of them. RBI imposes penalty on 13
Tier-2 UCBs are banks with deposits
more than Rs. 100 crore and up to Rs. PACS constitute the lowest tier of the cooperative banks
1,000 crore; Tier-3 UCBs are banks short-term cooperative credit structure
The Reserve Bank of India announced
with deposits more than Rs. 1,000 in the country and play a significant role
penalties on 13 cooperative banks for
crore and up to Rs. 10,000 crore; and in transforming the agricultural and
contravention of various regulatory
Tier-4 UCBs are banks with deposits rural landscape of the Indian economy.
norms. The penalties range between
more than Rs. 10,000 crore. PACS provide credit facility, distribute Rs 50,000 and Rs. 4 lakh.
RBI said UCBs, which currently do not agricultural inputs like seeds, fertilisers,
The maximum penalty of Rs 4 lakh has
meet the minimum net worth require- procurement of food grains, storage
been imposed on Shri Kanyaka Nagari
facilities, etc to the member farmers.
ment, shall achieve the minimum net
Sahakari Bank, Chandrapur, and Rs
worth of Rs. 2 crore or Rs. 5 crore in a The government is implementing a 2.50 lakh fine on The Vaidyanath Ur-
phased manner. Such UCBs shall project 'Computerization of 63,000 func-
ban Co-operative Bank, Beed.
achieve at least 50 per cent of the tional PACS' across the country with a
A penalty of Rs 2 lakh each has been
applicable minimum net worth on or total financial outlay of Rs 2,516 crore.
slapped on Wai Urban Co-operative
before March 31, 2026, and the entire
Bank, Satara and Indore Premier Co-
stipulated minimum net worth on or Multi-State Co-operative
operative Bank, Indore.
before March 31, 2028.
Societies (Amendment)
For contravention of various norms, a
Bill referred to joint com- penalty of Rs 1.50 lakh each has been
71 multi-state cooperative
imposed on Patan Nagarik Sahakari
mittee of Parliament
societies under liquidation
Bank, Patan and The Tura Urban Co-
A bill which seeks to amend the law on
till Dec 15: Amit Shah operative Bank, Meghalaya.
multi-state cooperative societies was
Around 71 multi-state cooperative so- on Tuesday referred to the joint com- The other banks on which have penal-
cieties are under liquidation this year mittee of Parliament, with Home Min- ties been imposed are: Nagrik Sahakari
so far, with the maximum number of ister Amit Shah saying 21 members will Bank Maryadit, Jagdalpur; Jijau Com-
them located in Rajasthan, be from Lok Sabha and 10 from Rajya mercial Co-operative Bank, Amravati;
Maharashtra, Delhi and Odisha, Parlia- Sabha. The Committee would be sub- Eastern & North-East Frontier Railway
ment was informed on Wednesday. mitting its report to Lok Sabha in the Co-op Bank, Kolkata; Jila Sahakari
According to the data placed by Coop- first week of the second part of the Kendriya Bank Maryadit, Chhatarpur;
eration Minister Amit Shah in his writ- Budget session (which usually begins in Nagrik Sahakari Bank Maryadit,
ten reply to the Rajya Sabha, five March), Shah said in the lower house. Raigarh; Jila Sahakari Kendriya Bank
multi-state cooperative banks were Maryadit, Bilaspur; and Jila Sahakari
The Multi-State Co-operative Societies
also under liquidation till December 15, Kendriya Bank Maryadit, Shahdol.
(Amendment) Bill, 2022, which seeks
2022.
to bring transparency and accountabil- In each case, the RBI said penalties are
Out of 71 multi-cooperative societies ity in the sector, was introduced in Lok based on deficiencies in regulatory
that are under liquidation, 15 of them Sabha on December 7 and opposition compliance and is not intended to pro-
are located in Rajasthan, followed by members had demanded that it be nounce upon the validity of any trans-
13 in Maharashtra, 11 each in Delhi referred to a standing committee for action or agreement entered into by
and Odisha, the data showed. review. the banks with their customers.

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