Sahakar Bharati demands more time for Expert Committee on UCBs
Term ending on June 8; experts failed to submit views due to Covid
Sah Bharati has demanded an extension of two more months in the time-frame for the Expert Committee, constituted by RBI to strengthen urban cooperative banks to submit its reports.
In a letter to the RBI Governor which is jointly signed by the Sahakar Bharati President and the National General Secretary, the leaders have said that due to Covid conditions and the continued surge of Covid infections, it has not been possible for many UCBs, Academicians,Co-operators, etc to submit their views to the Committee.
Following the promise made recently by RBI Governor Shaktikanta Das, RBI announced on Monday the constitution of an Expert Committee on UCBs, which will be chaired by N S Vishwanathan, Former Deputy Governor.
There is also a representative in the Expert Committee from the co-operative sector. Nafcub President Jyotindra Mehta has been made as one of the members in the committee.
The committee comprises Chairman, six members and a convenor. Besides Vishwanathan, Harsh Kumar Bhanwala, the former Chairman of NABARD, Mukund M Chitale Chartered Accountant, retired IAS officers NC Muniyappa and RN Joshi IAS (Retired), Prof MS Sriram, IIM Bangalore, Jyotindra M. Mehta- President of NAFCUB (National Federation of Urban Cooperative Banks and Credit Societies) are the members and Neeraj Nigam- Chief General Manager-in-Charge of RBI’s Department of Regulation is convenor.
The urban cooperative banking sector is divided on the composition of an Expert Committee, announced by the RBI on Monday for the growth of urban co-op banks. While the RSS affiliated body Sahakar Bharati has welcomed the move, Maharashtra Federation Chief Vidyadhar Anaskar registered his protest raising several points.
Welcoming the committee, Sahakar Bharati National Organizing Secretary Uday Joshi said, “Sahakar Bharati Welcomes the constitution of expert committee for UCBs. The report should pave the way for the orderly growth of the UCB sector”.
Sahakar Bharati also dismissed the charge that the Committee has been partial in the sense that only one representation (Jyotindra Mehta) from the UCB sector has been included.
The Reserve Bank of India (RBI) on Monday said it has constituted an eight-member expert panel to draw up a regulatory road map for urban co-operative banks (UCBs) and study the sector’s consolidation prospects.
Among the terms of reference of this committee will be to suggest effective measures for faster rehabilitation and resolution of UCBs. It has been tasked to look into regulatory measures that the central bank has taken with respect to UCBs and evaluate the impact it has had over a period of five years. It has also been asked to suggest measures to strengthen the sector after amendments to the Banking Regulation Act, 1949, which gives the central bank more teeth to supervise them. The expert committee has been asked to submit its report within three months.
RBI sets up eight-member panel to strengthen UCB sector
February 15, 2021
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The Reserve Bank of India (RBI) has set up an eight-member expert committee to examine the issues and to provide a road map for strengthening the urban co-operative banking (UCB) sector, including suggesting effective measures for faster rehabilitation/ resolution of these banks and assess potential for consolidation in the sector.
The committee, headed by NS Vishwanathan, former Deputy Governor, RBI, will leverage on the recent amendments to the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies) to review the current regulatory/supervisory approach and recommend suitable measures/changes to strengthen the sector.