Sahakar Bharati demands inclusion of co-operators in RBI’s EC

Sahakar Bharati has hailed the decision of the Reserve Bank of India for the constitution of the Expert Committee (EC) for UCBs and has demanded to include co-operators in the Committee.

In the messages sent by Sahakar Bharati, National General Secretary Uday Joshi, said, “Sahakar Bharati hails the constitution of Expert Committee (EC) for UCBs vide RBI Governor Statement dated 5th Feb 2021.”

Sahakar Bharati had been constantly pressing for the constitution of the EC, particularly after the enactment of Amendments in the BR ACT & a fall in the number of UCBs across the country, added Joshi.

Sah Bharati demands inclusion of co-operators in RBI’s EC

However, Sahakar Bharati also expects the constitution of a broad-based EC which will consider important points for the overall development of the sector. The EC should have officials & co-operators drafting a vision for the growth of the UCB Sector including issuing of licences for new UCBs.

“Providing a roadmap with milestones, for voluntary conversion of Credit Coops into UCBs & vice versa. Review of guidelines regarding Board of Management. Guidelines for raising capital in the form of Shares, through Public Issue & on private placement basis”, Joshi’s message further reads.

Readers would recall that on Friday, RBI Governor announced that an Expert Committee (EC) will be constituted to provide a medium-term road map for strengthening the Primary (Urban) Co-operative Banks leveraging the legislative amendments.

The Constitution of the Expert Committee (EC) and its terms of reference will be announced shortly, added the RBI Governor saying the Primary (Urban) Co-operative Banks are an important segment of the credit structure.

In his statement, the RBI Governor said “The Reserve Bank has undertaken several measures in the recent past to strengthen the Urban Co-operative Banking sector and deepen financial inclusion. The recent amendments to the Banking Regulation Act, 1949 have brought near parity in regulatory and supervisory powers between Primary (Urban) Co-operative Banks and commercial banks, including those related to governance, audit and resolution.”

It bears recall that the Monetary Policy Committee (MPC) met on 3rd, 4th and 5th February 2021 and deliberated on current and evolving macroeconomic and financial developments, both domestic and global. The MPC voted unanimously to leave the policy repo rate unchanged at 4 per cent.