Page 25 - Banking Finance April 2016
P. 25
CO-OPERATIVE BANK NEWS
CO-OPERATIVE BANK
Bharat Bank ties with Gujarat state co-op banks up the stake for 'doorstep'
Chillr to make easier pay- facilities
ments for its users
Gujarat is lately raising the ante for pro- for the co-operative banks in the state
Bharat viding basic banking services at the re- through core banking facilities, the
Bank, a mote and tribal areas at
Mumbai 'doorstep'. For instance, the Gujarat cooperative banks
based co-operative Bank, announced Ahmedabad District Coop- are upping the ante in
its tie-up with mobile payment app erative (ADC) bank has terms of technology adop-
'Chillr'. This association will allow the started micro ATM services tion. With 'Bank at Your
bank's customers to instantly trans- in rural areas. Similarly, Door' concept, a represen-
fer money to any contact on their Rajkot Nagarik Sahakari tative of the cooperative
phonebook using the Chillr app. Bank Limited (RNSBL) is also going to banks or agriculture soci-
launch such a service for rural areas ety will reach to end users to provide
Chillr is directly linked to the across Gujarat even as other cooperative basic banking services," said Jyotindra
customer's bank account wherein banks too plan to commence the same. Mehta, president of National Federa-
the user can transfer money to any tion of Urban Cooperative Banks and
person with an account in the same According to cooperative bank offi- Credit Societies (NAFCUB) and chair-
bank in India, once he/she downloads cials, the motive of initiating micro ATM man of Gujarat Urban Cooperative
the app and registers. services is to provide basic banking ser- Banks Federation (GUCBF).
vices at the doorstep to villagers who
"In view of the sweeping changes in are currently out of banking fold and While small villages will get banking
the banking industry and customer banks are yet to reach them. facilities at their doorstep, banks will
preferences, we continue to pay spe- in turn reap benefits through opening
cial attention to offer easy and se- "After creating a technology umbrella of new accounts remotely.
cure tech-enabled banking solutions.
We are glad to partner with Chillr in Cooperative Bank - unmanaged segment of Banking
achieving this goal," said CR Mulky,
CEO, Bharat Bank. While attention is focused on the mammoth bad loans of public sector banks
(PSBs), one of the worst-managed segments of Indian banking continues to fly
With even cooperative banks which below the radar. Cooperative banks, under dual regulation of RBI and the Reg-
were thought to be localised and istrar of Cooperatives (RoC) and systematically mismanaged by politicians and
community specific banks, tying up political parties, are a source of big losses to innocent depositors, mainly senior
with technology innovators, it re- citizens, who are attracted by the higher interest they pay on term deposits.
flects on the changing demands of
the public from their banks. Cooperative banks fail with scandalous regularity and end up duping depositors
who often get just 10% to 15% of their money after a decade-long liquidation
process. Often, they only get Rs1 lakh each through the Deposit Insurance Guar-
antee Corporation (DIGC).
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