1 hr ago
RBI Calls for Stronger Governance in Cooperative Banks
India’s urban cooperative banks were told to improve how they are managed.
RBI officials said these banks need stronger internal checks and better technology.
They also need to protect customers from online fraud and money-mule accounts.
Officials said bank leaders should be properly qualified and trustworthy.
Banks that are weak should be dealt with quickly.
The RBI and cooperative authorities were asked to work more closely together.
Mission SAKSHAM was mentioned as a way to build skills in the sector.
The discussions took place at a conference about governing and supervising these banks.
RBI Deputy Governor Swaminathan J urged urban cooperative banks to improve governance, internal controls and technology adoption.
The RBI highlighted the need to combat cyber-enabled fraud and money-mule accounts, including through Mission SAKSHAM.
Deputy Governor Shirish Chandra Murmu called for professional, fit-and-proper boards and senior management at UCBs.
Officials stressed closer coordination between the RBI, Registrars of Cooperative Societies and the Central Registrar.
The conference addressed regulatory expectations and timely resolution of weak or liquidating urban cooperative banks.
- Who
- RBI Deputy Governors Swaminathan J and Shirish Chandra Murmu, Central Registrar of Cooperative Societies Shiv Pal Singh, and cooperative-sector authorities.
- What
- Officials called for stronger governance, internal controls, technology adoption, fraud prevention and timely action for weak urban cooperative banks.
- Where
- At a conference organised by the Reserve Bank of India; the specific location is not stated.
- When
- At the third Conference of Registrars of Cooperative Societies, held on Tuesday.
- Why
- To improve accountability, supervision, professionalisation and resilience in urban cooperative banks.
Key facts
- Event
- Third Conference of Registrars of Cooperative Societies
- Organizer
- Reserve Bank of India
- Institutions discussed
- Urban cooperative banks, the RBI, Registrars of Cooperative Societies and the Central Registrar of Cooperative Societies
- Governance priorities
- Professional and fit-and-proper boards and senior management, plus robust internal controls
- Technology and security
- Greater technology adoption and stronger controls against cyber-enabled fraud and money-mule accounts
- Sector initiative
- Mission SAKSHAM was cited for capacity building
- Resolution priority
- Timely resolution of weak UCBs and banks under liquidation
Sources
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