3 weeks ago
Shah urges urban cooperative banks to see RBI differently
Urban cooperative banks are special banks in India that are owned by groups of people working together.
A very important government leader, Amit Shah, spoke to the people who run these banks in Mumbai.
He told them that India's central bank, called the RBI, has helped them a lot in recent years.
He said the banks should look at the RBI from a different viewpoint and not be afraid of it.
The RBI has let these banks open more branches, deliver banking at people's doorsteps, and issue demand drafts and life certificates.
These banks together keep more than six lakh crore rupees of people's money safe.
Shah said lending small amounts of money to ordinary people is very safe, because in his own experience people paid back over 99 rupees out of every 100, including interest.
He also said the head office of NUCFDC, an organization that helps these banks, will move from New Delhi to Maharashtra.
He wants all 1,400 urban cooperative banks to join the organization so they can get help with technology and safety.
Union Cooperation Minister Amit Shah urged urban cooperative banks (UCBs) to view the RBI from a 'different viewpoint,' saying the central bank has 'proactively helped' the sector during his five-year tenure.
Shah cited RBI relaxations including liberalised branch opening, doorstep banking, demand drafts, life certificates, and a dedicated nodal officer for UCBs, which hold over Rs 6 lakh crore in deposits.
RBI Governor Sanjay Malhotra announced progress on 'on-tap' licensing of UCBs, ending a two-decade-long pause in the matter.
Shah said small borrowers are the safest segment for lenders, citing over 99 per cent repayment including interest on Rs 2.5 lakh collateral-free loans from his experience chairing a UCB in Gujarat.
Shah announced NUCFDC's head office will move from New Delhi to Maharashtra and urged all 1,400 UCBs to join the umbrella body, which currently has 690 members.
- Who
- Amit Shah, Union Minister of Cooperation, who also handles the Home portfolio, along with RBI Governor Sanjay Malhotra.
- What
- Shah urged urban cooperative banks to look at the RBI from a 'different viewpoint,' highlighting RBI's proactive help, while RBI announced progress on 'on-tap' licensing of UCBs.
- Where
- Mumbai, at the inauguration of the National Urban Cooperative Finance and Development Corporation's (NUCFDC) new office building at the BSE.
- When
- Saturday, August 8.
- Why
- To strengthen UCB-RBI relations and help UCBs scale up, as they play an important role in supporting small borrowers and entrepreneurs in India's development.
Key facts
- Speaker
- Amit Shah, Union Minister of Cooperation (also Home portfolio)
- Event
- Inauguration of NUCFDC's new office building at BSE, Mumbai
- Date
- Saturday, August 8
- UCB deposits
- Over Rs 6 lakh crore
- Number of UCBs
- Over 1,400
- NUCFDC membership
- 690 members, urged to cover all 1,400 UCBs
- On-tap licensing
- Progress announced by RBI Governor Sanjay Malhotra, ending a two-decade pause
- Small-borrower repayment
- Over 99 per cent including interest on Rs 2.5 lakh collateral-free loans
Quotes
Amit Shah
Union Minister of Cooperation
“"I know of your experience till now. RBI looks at you from a particular viewpoint, and UCBs also look at RBI from a different viewpoint. But we have to come out of it."”
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“"My five years’ experience as the Union Cooperatives Minister suggests that whenever we have put a step forward with confidence, RBI has proactively helped us."”
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