Union Minister of State for Finance Bhagwat Karad recently visited the headquarters of Maharashtra State Cooperative (MSC) Bank and reviewed problems being faced by the Urban Cooperative Banking sector.
During the meeting, issues between UCBs, the Central Government and issues related to RBI were brought up for discussions and the co-operators urged the Minister to help them resolve sooner than later. The representatives from Saraswat Cooperative Bank, SVC Cooperative Bank, Abhyudaya Cooperative Bank, Deccan Mercantile Cooperative Bank, GS Mahanagar Cooperative Bank and other UCBs were present during the meeting.
In a press release mailed by MSC Bank, it is said that the issues between UCBs and RBI include Differential NPA criteria for UCBs: 180 days NPA norms instead of 90 days for loans upto Rs 1 crore for all UCBs irrespective of size, Net Banking Transactions, Housing Loans – Home Loan under CRE, Priority Sector Advances, Advances, Gold Loan – Bullet Repayment, Closure of Pending Fraud Cases, Constitution of Umbrella Organization, Impact on bank provision of ARCs pursuant to RBI’s Master Direction on Transfer of Loan Exposures and others.
Between UCBs and the Central Government, issues involved include Restoration of pre-2006, position of Sec. 80 (P) by withdrawal by Sec.80 (P) (4) of Income Tax Act,1961, Permit to UCBs to handle Government Agency Business, Income Tax Department does not allow the expenditure permitted by the RBI through various RBI Circulars / Guidelines and TDS exemption to Co-operative Banks on Payment of interest to its’ members and enhancing the Limit of interest paid on Term Deposits from Rs 10,000 to Rs 50,000.
In his speech, Union Minister of State for Finance Dr Bhagatavaji Karad assured the attendees that a meeting would soon be held along with the representatives of Urban Co-operative Banks and the relevant officials of the Reserve Bank, with an objective to resolve the issues related to UCBs through a detailed discussion.
MSC Bank Administrative Board Chairman Vidyadhar Anaskar made a power presentation in which he shared the MSC bank key financial indicators of the last five years, among other things.
Addressing the participants, Maharashtra Cooperative Minister Atul Save asserted the need to raise a ‘cooperative assistance fund’ to provide the necessary assistance to cooperative societies in difficult times. He also announced that a comprehensive meeting will be held soon to solve the problems of urban cooperative banks.
Former MP Anandrao Adsul, Mumbai DCCB Chairman Pravin Darekar and other stalwarts from the cooperative sector also graced the occasion.
