In order to bolster the co-operative sector, there will be no forced privatisation of co-operative banks, Union Road Transport & Highways and MSME Minister Nitin Gadkari said at the Loksatta Urban Co-operative Banking (UCB) e-conclave, on January 7.
Gadkari, who was the chief guest at the e-conclave, said that as a representative of the Centre and also as a representative of the people, he would act as a bridge between the co-operative banks in Maharashtra and the Finance Ministry, RBI, NABARD and the state government. He added that co-operative banks must compete with private banks to make an impression on lawmakers in Delhi.
The minister said that co-operative banks have enabled the common man to have the financial backing to be self-reliant. This, he said, has supported the economy of the country and the state.
Gadkari further said that while privatisation of co-operative banks has been discussed since 1996, neither the central government nor the Reserve Bank of India (RBI) has ever forcefully imposed it on the banks. He added that co-operative banks must fearlessly face the increasing competition from private sector banks.
In a move aimed at protecting the interest of depositors, the Parliament passed amendments to the Banking Regulation Act in September 2020, bringing co-operative banks under the supervision of the RBI.
After the amendment, in another circular to all banks, the banking regulators stated that it is imperative that banks continue to conserve capital to support the economy and absorb losses.
With the aim of providing a platform to discuss the issue, Loksatta organized the ‘Urban Co-Operative Banking e-Conclave’. Heads, chairmen, CEO’s of various UCBs from across Maharashtra were part of this e-Conclave.
