Urban cooperative banks of National Capital Region have reacted in a mixed manner on the issue of latest RBI guidline on opening of Urban Cooperative bank with a seed capital of Rs 3 crore in place of Rs 15 lakh.
Talking to Indiancooperative.com Yatindra Mallik, Chairman of Keshav cooperative bank welcomed the move and emphasized. that it would be always better to take the opinion of urban cooperative banks before issuing guidelines. The mutual exchange of ideas would help UCBs to implement RBI guidelines better, he added.
Noble Cooperative bank supported RBI move while talking to the correspondent of indiancooperative.com. Noble bank is active in Noida and had to suffer the pain of shifting on accounts of Supreme Court directions against banks in residential area. V .K Sharma its CEO said that even otherwise it cost roughly Rs 50 lakh in opening a branch of a urban cooperative bank. But he resisted governmental effort to put cooperative banks on the same footing with corporate banks when it comes to regulation and supervision.
The Chief Executive of Citizen cooperative bank Shri Prem Mishra welcomed RBI move saying this would check fake banks from coming into existence. Such a step would also reduce the incidence of closing down of cooperative banks which are started without viable capital, he added.
Many other banks such as Jamia Cooperative bank felt that Rs 3 crore is a big amount given the nature and scope of cooperative banks. Such a move by RBI would discourage many prospective do-gooders who intend to help those marginalized sections of society no body is bothered with, they argue.