A delegation led by Rajasthan Urban Cooperative Banks Federation Chairman Mohan Parashar recently met with State Cooperation Minister Gautam Dak to present a comprehensive charter of demands aimed at resolving critical issues facing the urban cooperative banking sector in the state.
Among the key issues raised was the demand for Urban Cooperative Banks (UCBs) to be exempt from the Cooperative Recruitment Board. Parashar proposed that recruitment should continue under the service rules issued by the Registrar of Cooperative Societies, Rajasthan, on February 21, 2006.
He explained that these rules ensure the selection of local candidates, who are best suited to the operational needs of small, community-focused banks. Parashar emphasized that UCBs are small and local in nature, and the existing system of recruitment, which involves a senior cooperative department officer on the selection committee, better serves these institutions.
Parashar also raised the issue of elections at Sterling Urban Cooperative Bank in Jaipur and Sikar Urban Cooperative Bank in Sikar, both of which are under administrative control. He argued that the appointment of administrators undermines cooperative principles and noted that the Reserve Bank of India (RBI) has stressed the importance of timely elections in such institutions. Both banks are classified as weak, and Parashar called for immediate steps to restore their governance through elections.
Another issue discussed was the amendment process for cooperative rules. Parashar highlighted that Section 11 of the cooperative rules requires 50% member attendance and a two-thirds majority for amendments, a quorum that many cooperatives struggle to meet. He proposed reducing the quorum requirement to the core group or a two-thirds majority of those present at the meeting to facilitate smoother decision-making and operations.
Addressing loan recovery challenges, Parashar pointed out that overdue borrowers often file appeals without the bank’s perspective being heard, which disrupts recovery processes. He suggested that borrowers should deposit at least 40% of the overdue amount before their appeal is heard, even if submitted “under protest,” to ensure greater accountability and fairness in the process.
Parashar also brought up inefficiencies in complaint management, where identical complaints are repeatedly investigated by different officers, straining bank resources. He proposed appointing a designated officer at the Jaipur head office to streamline the complaint resolution process and avoid redundant investigations.
The delegation’s meeting with Minister Dak is seen as a significant step toward addressing the concerns of urban cooperative banks in Rajasthan and enhancing the sector’s overall efficiency and effectiveness.
