3 weeks ago

Shah urges urban cooperative banks to see RBI differently

Shah urges urban cooperative banks to see RBI differently
RBI has proactively helped UCBs; cooperatives should look at regulator differently: Shah · theprint.in

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.

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."”
theprint.in
“"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."”
theprint.in

Sources

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