Page 19 - Banking Finance March 2019

CO-OPERATIVE BANK NEWS

Loan waiver helps coop- RBI plans ‘umbrella organisation’ for urban cooperative
erative banks more than banks
nationalised ones The Reserve Bank of India plans to set up an “umbrella organisation” for urban
cooperative banks (UCBs) to improve their opera-
The District Central Cooperative tional and financial health as per global best prac-
Banks (DCCBs) tices. “A long-term solution to make the UCB sec-
have reported
tor financially resilient and to enhance the deposi-
lower outstanding
tors’ confidence is to set up an umbrella
farm credit, even
organisation (UO) as prevalent in many countries,”
as nationalised
RBI said.
banks have shown
Apart from extending liquidity and capital support, it will set up an information
an increase in the amount.
and technology infrastructure to enable the banks to widen services at a rela-
Almost two years after Chief Minis- tively lower cost. It may also offer fund management and other consultancy
ter Devendra Fadnavis announced Rs
services. Another reason for the move is that the structure, size, lack of avenues
34,000-crore farm loan waiver, Dis-
for raising capital funds and limited area of operation of urban cooperative banks
trict Central Cooperative Banks add to their financial vulnerabilities, RBI said.
(DCCBs) seem to have benefited
more than the nationalised banks Kerala Bank: Government ultimatum to Malappuram
under the scheme.
District Cooperative Bank
The DCCBs have reported lower out-
standing farm credit, even as With the March 31 deadline stipulated by the RBI to complete the formation of
nationalised banks have shown an in- Kerala Bank arriving fast, the state government, it is learnt, has given the
crease in the amount. Under the Malappuram District Cooperative Bank (DCB) until February 15 to either secure
a nod from its general body for a merger with Kerala State Cooperative Bank
Chhatrapati Shivaji Maharaj Shetkari
(KSCB) or be left out.
Sanman Yojna, announced in June
2017, pending crop loans up to Rs To ease the merger process, the Kerala Cooperative (Amendment) Bill, 2019,
1.50 lakh were to be waived for in- which seeks a relaxation of Section 14 of Kerala Cooperative Societies Act, 1969,
dividual farmers, while an incentive was tabled in the Assembly. It seeks changing the current requirement of a two-
of Rs 25,000 was announced for thirds majority of members – Primary Agriculture Co-operatives (PACs) – for the
those who repay their loans regu- amalgamation and transfer of assets and liabilities of two or more cooperative
larly. Initially, the scheme was to be societies, into a simple majority.
implemented for loans pending from
2009 onwards, but later the time Sources at the DCB say employees are urging the UDF leaders to change their
period was extended to include loans stand on the issue as getting left out will ensure the Malappuram DCB will have
pending since 2001. to transition into an ‘Urban Cooperative Bank’ with the incoming two-tier coop-
erative banking system in the state. “The management has called for a general
As per the government scheme, body on February 13, and it is expected a simple majority can be attained,” said
farmers can avail 11-month crop loan a Malappuram DCB representative.
from finance institutions at 6 per cent
interest. Timely repayment will fur-
ther qualify a farmer for 3 per cent Uttarakhand Cooperative Bank announces 442 open-
interest subvention from the Centre ings
and a similar 2 per cent subvention Uttarakhand Cooperative Bank has announced opening of 442 vacancies of Clerk-
from the state – thus the actual in- cum-Cashier, Junior Branch Manager and Senior Branch Manager Posts to be
terest rate payable becomes just 1 filled. Uttarakhand Cooperative Bank recruitment 2019 application form for
per cent. This capital is usually used applying for 442 jobs began on February 23, 2019, and the last date to apply is
by farmers for investment in seed
March 20, 2019. The candidates will have to register for the Common Recruit-
and other agricultural inputs.
ment Process through online examination.

BANKING FINANCE | MARCH | 2019 | 19