BANGALORE: Four officials of a rural cooperative bank swindled the institution of Rs 1.56 crore, by availing of loans through fake Self Help Groups (SHGs).
The four men, working for the Bangalore Rural and Ramanagaram District Cooperative Bank, took advantage of a microfinance scheme of the government involving a Nabard loan. They formed 32 fake SHGs for this purpose. Only recently, the bank manager realized that they were fabricated by the employees.
Facing charges of misappropriation of funds, the foursome is now absconding. CCB sleuths, who are probing the case, are on the lookout for the bank's loan section branch manager B K Puttaramaiah, in-charge manager of Kanakapura branch H Krishna, field superintendent K N Swamy Gowda and Chennagiriappa of Agriculture Cooperative Bank of T Hosahalli.
The fraud comes at a time when the unregulated microfinance industry is facing a crisis by way of high interest rates and low repayment of loans.
Saturday, November 27, 2010
Thursday, November 25, 2010
Ignore complaints by loan defaulters: Cooperative to govt
Peeved at registration of a police case against its loan recovery official, Punjab State Cooperative Agricultural Development Bank Limited (PSCADB) has decided to take up the issue with state government.
"Certainly, we will take up the matter (police case against recovery official) with Registrar of Cooperative Societies, which will in turn raise this issue with the state (Punjab) government," a senior official of the state-run PSCADB said here.
"We want (state) government should pass instructions to police not to lodge any FIR or entertain complaints against our recovery officials, who are just performing their duties," he said, "otherwise, our staff will get discouraged and demoralised to recover loan money from defaulters."
Police on November 20 had registered a case against the manager of Pathankot branch of the cooperative bank for abetting a farmer to commit suicide. A 60-year-old farmer was reported to have committed suicide allegedly because of harassment by cooperative bank official for not paying loan.
Officials of PSCADB can launch recovery process against defaulters under Punjab Cooperative Societies Act and Agriculture Development Banks Act.
PSCADB, which has extensive reach in rural and far-flung areas of the state, faces outstanding loan payments to the tune of Rs 2,019 crore till September this year with whopping 30 per cent of its borrowers (8.40 lakh) defaulting on loan payment.
During the current fiscal, the bank has so far been able to recover just Rs 117 crore from defaulters against the targeted recovery of Rs 903 crore.
courtesy : PTI /The Business Standard
"Certainly, we will take up the matter (police case against recovery official) with Registrar of Cooperative Societies, which will in turn raise this issue with the state (Punjab) government," a senior official of the state-run PSCADB said here.
"We want (state) government should pass instructions to police not to lodge any FIR or entertain complaints against our recovery officials, who are just performing their duties," he said, "otherwise, our staff will get discouraged and demoralised to recover loan money from defaulters."
Police on November 20 had registered a case against the manager of Pathankot branch of the cooperative bank for abetting a farmer to commit suicide. A 60-year-old farmer was reported to have committed suicide allegedly because of harassment by cooperative bank official for not paying loan.
Officials of PSCADB can launch recovery process against defaulters under Punjab Cooperative Societies Act and Agriculture Development Banks Act.
PSCADB, which has extensive reach in rural and far-flung areas of the state, faces outstanding loan payments to the tune of Rs 2,019 crore till September this year with whopping 30 per cent of its borrowers (8.40 lakh) defaulting on loan payment.
During the current fiscal, the bank has so far been able to recover just Rs 117 crore from defaulters against the targeted recovery of Rs 903 crore.
courtesy : PTI /The Business Standard
Tuesday, November 23, 2010
RBI cancels licence of Boriavi co-op bank
VADODARA/MUMBAI: The Reserve Bank of India (RBI) on Monday said it has cancelled the licence of Gujarat-based Boriavi People's Co-operative Bank as it has become insolvent and efforts to revive it have failed.
"The RBI has cancelled the licence of the Boriavi People's Co-operative Bank Ltd, Boriavi, in Karia (Kheda) Gujarat. The order of cancellation of the licence was given after the close of business on November 19, 2010," the apex bank said in a statement.
It has requested the registrar of co-operative societies of Gujarat to issue an order for winding up the bank and appoint a liquidator.
"The RBI cancelled the licence as the bank had ceased to be solvent, all efforts to revive it in close consultation with the government of Gujarat had failed and the depositors were being inconvenienced by continued uncertainty," the bank's statement added.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of the bank will be set in motion.
"On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions," RBI said.
"The RBI has cancelled the licence of the Boriavi People's Co-operative Bank Ltd, Boriavi, in Karia (Kheda) Gujarat. The order of cancellation of the licence was given after the close of business on November 19, 2010," the apex bank said in a statement.
It has requested the registrar of co-operative societies of Gujarat to issue an order for winding up the bank and appoint a liquidator.
"The RBI cancelled the licence as the bank had ceased to be solvent, all efforts to revive it in close consultation with the government of Gujarat had failed and the depositors were being inconvenienced by continued uncertainty," the bank's statement added.
With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of the bank will be set in motion.
"On liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs 1 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) under usual terms and conditions," RBI said.
courtesy : The Times of India
Software launched to link co-op banks
Chennai, Nov. 19: As part of the state government’s ongoing efforts to digitise the government machinery, state cooperative minister Ko.Si. Mani on Friday launched exclusive common application software for all district, central cooperative banks and urban cooperative banks in the state.
The new software would enable facilities like ATM, Internet banking and SMS banking, a feature only private and nationalised banks have, Mr Mani said. It also meets international standards for financial transactions in terms of security and it would be scalable to core banking solution too.
The new software also enables inter-operability between banks besides cutting down cost and optimising efficiency of service to the customer.
The software also deprives the cooperative bank customers of linguistic restrictions since the system could be converted to a language of user’s choice.
To begin with, data porting into the common application software ia being done in 1020 branches and about 930 bank branches are online. The new common application software developed with the support of Electronic Corporation of Tamil Nadu (Elcot) using open source technology could be altered or transferred to any other government body since the complete source code of it would be propriety of the cooperative department.
The software comprising 33 modules has been designed to cater to branch banking and head office module. While the branch module would meet all the basic banking functions of the district, central and urban cooperative banks, the head office module would cover back office operations such as staff management, payroll, tapal, reconciliation besides treasury operations such as investments and borrowings.
courtesy : Deccaan Chronicle
Wednesday, November 17, 2010
Stay order on Udhna Coop Bank by SC
Banking regulator, Reserve Bank of India has received stay order from Supreme Court against Udhna Citizens Cooperative Bank. This stay order comes in response to the stay order which was issued by Gujarat high court for a petition registered by the Cooperative bank against RBI for imposing restrictions in its operations as per Sec 35 (A) of Banking Act.
The high court had put a stay order on RBI imposing its restrictions till November 16, 2010.
Setu Madhavan, chairman, Udhna Citizens Cooperative Bank, said, "The RBI wanted to prove that it was above us and hence has obtained a stay. However, the high court is scheduled to hear the case on November 16. We will prove that we have enough liquidity and are in a good shape and that the RBI decision is wrong."
As per the bank, it has liquidity worth Rs 52.23 crore as on 2 November and deposits amount to Rs 95 crore. But RBI data says the NPA level of the bank is touching 76% which is not acceptable.
courtesy : www.rupeetimes.com
The high court had put a stay order on RBI imposing its restrictions till November 16, 2010.
Setu Madhavan, chairman, Udhna Citizens Cooperative Bank, said, "The RBI wanted to prove that it was above us and hence has obtained a stay. However, the high court is scheduled to hear the case on November 16. We will prove that we have enough liquidity and are in a good shape and that the RBI decision is wrong."
As per the bank, it has liquidity worth Rs 52.23 crore as on 2 November and deposits amount to Rs 95 crore. But RBI data says the NPA level of the bank is touching 76% which is not acceptable.
courtesy : www.rupeetimes.com
RBI imposes Rs 5-lakh penalty on Pune's Cosmos Co-op Bank
MUMBAI: The Reserve Bank of India (RBI) today said it has imposed a penalty of Rs 5-lakh on Pune-based Cosmos Co-operative Bank for violation of instructions/guidelines of the Reserve Bank of India (RBI).
The bank had violated RBI's directives by sanctioning loans to directors, their relatives and firms in which directors or their relatives are interested, the apex bank said in a statement issued here.
The bank has violated instructions by not publishing the correct amount of loans outstanding in the names of directors/relatives/firms in which they are interested in the 'notes on account' to the balance-sheet in the successive annual reports during 2004 to 2009, the statement said.
Cosmos had not furnished correct information in the quarterly control returns submitted to RBI during the period 2004 to 2009. "None of the 43 loans sanctioned in violation of directives were reflected in the OSS data submitted to Reserve Bank of India," the statement said.
The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the fact of the case and the bank's reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty, the apex bank said.
The bank had violated RBI's directives by sanctioning loans to directors, their relatives and firms in which directors or their relatives are interested, the apex bank said in a statement issued here.
The bank has violated instructions by not publishing the correct amount of loans outstanding in the names of directors/relatives/firms in which they are interested in the 'notes on account' to the balance-sheet in the successive annual reports during 2004 to 2009, the statement said.
Cosmos had not furnished correct information in the quarterly control returns submitted to RBI during the period 2004 to 2009. "None of the 43 loans sanctioned in violation of directives were reflected in the OSS data submitted to Reserve Bank of India," the statement said.
The RBI had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the fact of the case and the bank's reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty, the apex bank said.
courtesy : The Economic Times
Saturday, November 13, 2010
Slowdown dents margins of urban co-op banks in 2009-10
sify finance says:
Facing the brunt of economic slowdown due to the global financial turmoil, Indian urban cooperative banks reported a drop in the interest margin (NIM) in 2009-10.
NIMs for the sector declined to 2.5 per cent for 2009-10, from 2.9 per cent in 2008-09. Net profits declined in the past two financial years, say Reserve Bank of India data.
The sector reported lower return on assets (RoA) during the past two years as compared with 2007-08. The decline in RoA was mainly due to a decline in NIM and non-interest margin during the past two years.
RoA of the scheduled UCBs sector had witnessed a rising trend during the past decade. The interest income of scheduled UCBs grew at a higher rate than that of non-scheduled UCBs at end-March over the previous year. Despite this, the non-scheduled UCBs were able to post higher net profits because of the deceleration in operating expenses, especially the staff expenses during the same period.
Improving health
The tally of financially weak urban banks declined (grade III and IV banks) to 330 in 2009-10 from 392 in 2008-09. Due to the consolidation process in the sector, the percentage of banks in grades III and IV witnessed a declining trend during recent years.
There was an improvement in the asset quality of the entire UCB sector in both absolute and percentage terms as at end-March over the previous year. Gross bad loans declined by Rs 135 crore to Rs 12,727 crore.
However, both gross as well as net non-performing loans of the UCB sector continued to be on the higher side, RBI said, in its Trends and Progress report for the banking sector in 2009-10.
Along with a decline in non-performing loans, there was also an increase in the coverage ratio of UCBs as of end-March over the previous year, indicating improvement in financial soundness. The provision coverage ratio improved to 62.9 per cent at the end of 2009-10 from 59.9 a year before.
The financial performance has improved considerably over the decade. The scheduled UCB sector started reporting overall net profits since 2003-04, as compared with net losses prior to it.
NIMs for the sector declined to 2.5 per cent for 2009-10, from 2.9 per cent in 2008-09. Net profits declined in the past two financial years, say Reserve Bank of India data.
The sector reported lower return on assets (RoA) during the past two years as compared with 2007-08. The decline in RoA was mainly due to a decline in NIM and non-interest margin during the past two years.
RoA of the scheduled UCBs sector had witnessed a rising trend during the past decade. The interest income of scheduled UCBs grew at a higher rate than that of non-scheduled UCBs at end-March over the previous year. Despite this, the non-scheduled UCBs were able to post higher net profits because of the deceleration in operating expenses, especially the staff expenses during the same period.
Improving health
The tally of financially weak urban banks declined (grade III and IV banks) to 330 in 2009-10 from 392 in 2008-09. Due to the consolidation process in the sector, the percentage of banks in grades III and IV witnessed a declining trend during recent years.
There was an improvement in the asset quality of the entire UCB sector in both absolute and percentage terms as at end-March over the previous year. Gross bad loans declined by Rs 135 crore to Rs 12,727 crore.
However, both gross as well as net non-performing loans of the UCB sector continued to be on the higher side, RBI said, in its Trends and Progress report for the banking sector in 2009-10.
Along with a decline in non-performing loans, there was also an increase in the coverage ratio of UCBs as of end-March over the previous year, indicating improvement in financial soundness. The provision coverage ratio improved to 62.9 per cent at the end of 2009-10 from 59.9 a year before.
The financial performance has improved considerably over the decade. The scheduled UCB sector started reporting overall net profits since 2003-04, as compared with net losses prior to it.
Many restrictions on UCBs go
Indian Cooperative says :
The urban cooperative banks finally have a reason to rejoice. The Reserve Bank of India has lifted many restrictions which were earlier posed on the modus operandi of these urban co-ops.
Speaking on this move by RBI, Deputy Governor Usha Thorat who retires now said, “UCBs’ area of operation is different from MFIs. Being community-based entities, UCBs cater to the middle and lower-middle classes.
The current set of policies should be seen as a move to incentivise and provide an enabling framework to the well-managed and strong UCBs.”
“It’s a dramatic, wonderful Diwali gift,” said SK Banerjee, MD of the largest co-operative lender, Saraswat Co-operative Bank.
RBI said that it felt some of the old restrictions coming in the growth track of these banks. “UCBs are also important instrument so far as financial inclusion goes,” Ms Thorat said.
Currently, unsecured lending of UCBs is restricted to Rs 2 lakhs. RBI has decided that housing, real estate and commercial real estate loans of UCBs will be linked to total assets instead of deposits.
Tuesday, November 9, 2010
Consolidation hits UCB deposits
Mumbai: On account of the consolidation process going on in the Urban Cooperative Banks (UCB) sector, percentage of banks in grades III and IV witnessed a declining trend during recent years.
Further, the absolute amount of deposits as well as advances with UCBs in grades III and IV also witnessed a decline in end-March 2010 as compared with the previous year. Accordingly, the percentage of banks in grades I and II as also their share in total deposits and advances of the sector exhibited a rising trend during the recent years. This implies a shift in the concentration of banking business in favour of financially sound UCBs
Out of a total of 103 no-objection certificate (NOCs) for merger issued by the Reserve Bank, 91 were in respect of weak banks. Of these 91, 71 mergers have so far been notified by the RCS of the respective States.
All major items of the profit and loss account of the UCB sector witnessed deceleration as at end-March 2010 over the previous year. However, the deceleration was more on the income side than on the expenditure side leading to lower overall operating profits as compared with the previous year. Though there was a decline in provisions and contingencies, it could not compensate for the decline in operating profits. Net profits, therefore, witnessed a decline at end-March 2010 as compared with the previous year. Accordingly, there was a decline in the return on assets (RoA) as well as net interest margin (NIM) of the sector as at end-March 2010 over end-March 2009. The non-interest margin continued to be negative at end-March 2010 as in the previous year. The non-interest income registered an absolute decline at end-March 2010 over the previous year.
The overall financial position of rural cooperative credit institutions improved as at end-March 2009 over the previous year. As at end-March 2009, half of the total rural cooperative credit institutions reported profits. Profits reported by the sector mainly emanated from DCCBs. While StCBs, DCCBs and State Cooperative Agriculture and Rural Development Banks (SCARDBs) reported overall net profits at end-March 2009, ground level institutions, viz., Primary Agricultural Credit Societies (PACS), and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) reported overall net losses.
courtesy : The Financial Express
Saturday, November 6, 2010
Nabard launches subsidy scheme to promote solar energy
The National Bank for Agriculture & Rural Development in association with the Union ministry of new and renewable energy, has firmed up plans to promote solar energy penetration through a multi agency approach.
Nabard, run by the central government, has launched a capital subsidy cum refinance scheme for installation of solar off grid (photovoltaic and thermal) applications. This is to enable cooperative banks and regional rural banks to extend capital subsidy and loans at subsidised rates to people opting to install solar applications such as home lighting, water heaters and irrigation pumps.
Nabard, run by the central government, has launched a capital subsidy cum refinance scheme for installation of solar off grid (photovoltaic and thermal) applications. This is to enable cooperative banks and regional rural banks to extend capital subsidy and loans at subsidised rates to people opting to install solar applications such as home lighting, water heaters and irrigation pumps.
Friday, November 5, 2010
ആദ്യത്തെ എ.ടി.എം: പീപ്പിള്സ് അര്ബന് ബാങ്കിന് ചരിത്ര നേട്ടം.
തൃപ്പൂണിത്തുറ: സംസ്ഥാനത്തെ അര്ബന് സഹകരണ ബാങ്കുകളുടെ കൂട്ടത്തില് ആദ്യത്തെ എ.ടി.എം സ്ഥാപിച്ചു കൊണ്ട് തൃപ്പൂണിത്തുറ ആസ്ഥാനമായുള്ള പീപ്പിള്സ് അര്ബന് സഹകരണ ബാങ്ക് ചരിത്രത്തില് സ്ഥാനം സ്വന്തമാക്കി. 2010 സെപ്റ്റംബര് 25 നു തൃപ്പൂണിത്തുറയില് നടന്ന ചടങ്ങില് റിസര്വ് ബാങ്കിന്റെ തിരുവനന്തപുരം റീജിയണല് ഓഫീസിലെ അസിസ്ടന്റ്റ് ജനറല് മാനേജര് ശ്രീ. പി.എന്.നന്ദകുമാര് എ.ടി.എമ്മിന്റെ ഉത്ഘാടനം നിര്വഹിച്ചു.
ബാങ്ക് ചെയര്മാന് ശ്രീ. എം.സി.സുരേന്ദ്രന്, ബാങ്ക് ജനറല് മാനേജര് ശ്രീ. ഇ.പി.ശ്രീകുമാര് എന്നിവരെ കൂടാതെ ബാങ്ക് ഡയറക്ടര്മാരും നിരവധി ഇടപാടുകാരും ജീവനക്കാരും തദവസരത്തില് സന്നിഹിതരായിരുന്നു. പുതിയ കോര് ബാങ്കിംഗ് സംവിധാനം നിലവില് വന്നതിനെ തുടര്ന്ന് പുതുതായി നിലവില് വന്ന എസ്.എം.എസ്.ബാങ്കിങ്ങിന്റെ ഉത്ഘാടനവും ശ്രീ. നന്ദകുമാര് നിര്വഹിച്ചു. ഈ സംവിധാനം നിലവില് വന്ന, സംസ്ഥാനത്തെ ആദ്യ അര്ബന് ബാങ്കും കൂടെയാണ് പീപ്പിള്സ് അര്ബന് സഹകരണ ബാങ്ക്. ദേശ സാല്കൃത ബാങ്കുകളുടെ എ.ടി.എമ്മുകളില് ലഭ്യമായ ഒട്ടുമിക്ക സൌകര്യങ്ങളും പുതുതായി ഉത്ഘാടനം നിര്വഹിച്ച എ.ടി.എമ്മില് ലഭ്യമാണ്.
ബാങ്കിന്റെ ശാഖാ വികസന പരിപാടിയുടെ ഭാഗമായി ബാങ്കിന്റെ പതിനാലാമത് ശാഖ ഏറണാകുളം ജില്ലയിലെ കാഞ്ഞിരമറ്റത്തു ഉടനെ ഉത്ഘാടനം ചെയ്യപ്പെടും. സംസ്ഥാന തല നിക്ഷേപ സമാഹരണത്തില് ഒന്നാം സ്ഥാനത്തിനു അര്ഹമായ പീപ്പിള്സ് അര്ബന് സഹകരണ ബാങ്കിന് ഒക്ടോബര് 30 നു ആലപ്പുഴയില് വെച്ചു നടന്ന ചടങ്ങില് വെച്ച് സഹകരണ വകുപ്പ് മന്ത്രി അവാര്ഡ് വിതരണം നടത്തുകയുണ്ടായി. ബാങ്കിന് വേണ്ടി വൈസ് ചെയര്മാന് ശ്രീ. പി.പി.അപ്പു അവാര്ഡ് ഏറ്റുവാങ്ങി.
സംസ്ഥാന ഗവണ്മെന്റും റിസേര്വ് ബാങ്കും തമ്മില് ധാരണാ പത്രം ഒപ്പിട്ടതിനെ തുടര്ന്ന് ശാഖാ വികസനം, എ.ടി.എം സ്ഥാപനം തുടങ്ങിയവയില് റിസേര്വ് ബാങ്ക് മുന്പ് ഏര്പ്പെടുത്തിയിരുന്ന നിരോധനം നീക്കിയിരുന്നു. അതിനെ തുടര്ന്ന് സംസ്ഥാനത്ത് മുഴുവന് അര്ബന് സഹകരണ ബാങ്കുകളുടെ നിരവധി ശാഖകള് ചുരുങ്ങിയ കാലം കൊണ്ട് തന്നെ ആരംഭിക്കുകയുണ്ടായി.
ബാങ്ക് ചെയര്മാന് ശ്രീ. എം.സി.സുരേന്ദ്രന്, ബാങ്ക് ജനറല് മാനേജര് ശ്രീ. ഇ.പി.ശ്രീകുമാര് എന്നിവരെ കൂടാതെ ബാങ്ക് ഡയറക്ടര്മാരും നിരവധി ഇടപാടുകാരും ജീവനക്കാരും തദവസരത്തില് സന്നിഹിതരായിരുന്നു. പുതിയ കോര് ബാങ്കിംഗ് സംവിധാനം നിലവില് വന്നതിനെ തുടര്ന്ന് പുതുതായി നിലവില് വന്ന എസ്.എം.എസ്.ബാങ്കിങ്ങിന്റെ ഉത്ഘാടനവും ശ്രീ. നന്ദകുമാര് നിര്വഹിച്ചു. ഈ സംവിധാനം നിലവില് വന്ന, സംസ്ഥാനത്തെ ആദ്യ അര്ബന് ബാങ്കും കൂടെയാണ് പീപ്പിള്സ് അര്ബന് സഹകരണ ബാങ്ക്. ദേശ സാല്കൃത ബാങ്കുകളുടെ എ.ടി.എമ്മുകളില് ലഭ്യമായ ഒട്ടുമിക്ക സൌകര്യങ്ങളും പുതുതായി ഉത്ഘാടനം നിര്വഹിച്ച എ.ടി.എമ്മില് ലഭ്യമാണ്.
സംസ്ഥാന ഗവണ്മെന്റും റിസേര്വ് ബാങ്കും തമ്മില് ധാരണാ പത്രം ഒപ്പിട്ടതിനെ തുടര്ന്ന് ശാഖാ വികസനം, എ.ടി.എം സ്ഥാപനം തുടങ്ങിയവയില് റിസേര്വ് ബാങ്ക് മുന്പ് ഏര്പ്പെടുത്തിയിരുന്ന നിരോധനം നീക്കിയിരുന്നു. അതിനെ തുടര്ന്ന് സംസ്ഥാനത്ത് മുഴുവന് അര്ബന് സഹകരണ ബാങ്കുകളുടെ നിരവധി ശാഖകള് ചുരുങ്ങിയ കാലം കൊണ്ട് തന്നെ ആരംഭിക്കുകയുണ്ടായി.
Wednesday, November 3, 2010
UCBs get more to expand business
Mumbai: In a bid to facilitate the growth of well-managed and financially-sound urban cooperative banks (UCBs), the RBI has decided to withdraw the existing restrictions on granting multi-state status and extension of area of operation beyond the state of registration for such UCBs having a minimum net worth of Rs 50 crore. The central bank has also allowed such UCBs, which have acquired weak banks in other state(s), to extend the area of operation to the entire state of registration of the target bank provided they have minimum net worth of Rs 50 crore;
Further, the Tier-II UCBs
Urban co-operative banks get a policy boost
In an effort to ensure growth of well-managed and financially-sound urban cooperative banks (UCBs), the Reserve Bank of India (RBI) has proposed withdrawing restrictions on grant of multi-state status for those having a minimum net worth of Rs 50 crore.
UCBs (with a minimum net worth of Rs 50 crore) that have acquired weak banks in other states will be allowed to extend their area of operation to the entire state of registration of the target bank.
Urban co-operative banks on a high as RBI lifts curbs
MUMBAI: For years, urban co-operative banks, which have funded thousands to buy auto rickshaws and set up shops, suffered as rogue brokers tried to rob them, and many customers moved to high-street banks. The string of events that followed the 2001 market collapse also gave them a stigma that many have been trying to shake off.
Today, they are on a high. The Reserve Bank of India has offered urban co-operative banks or UCBs more freedom to operate by removing some of the restrictions, which were put in place five years ago to clean up the system.
When asked whether it was an attempt to position
Today, they are on a high. The Reserve Bank of India has offered urban co-operative banks or UCBs more freedom to operate by removing some of the restrictions, which were put in place five years ago to clean up the system.
When asked whether it was an attempt to position
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