In a move aimed at helping urban cooperative banks NAFCUB has negotiated with the Agricultural Ministry and succeeded in ensuring that UCBs are off the hook of the State Registrars of the cooperative societies.
The Central Registrar of Cooperative Societies had delegated powers to the Registrar of Coop Societies of the states/union territories under sec.108 of the Multi State Coop Societies Act 2002 vide its circular No.L-11017/10/2013 dated 29.5.2013 with a view to have proper regulation on large number of multi state coop societies that existed in the states.
In view of existence of the fact that multi state urban cooperative banks are regularly inspected by RBI under the B.R. Act and the statutory audit is done by Chartered Accountants as per the provisions of MSCS Act 2002, NAFCUB requested the Ministry of Agriculture to revisit the issue and keep the multi state urban coop banks out of the purview of the circular.
We are happy to inform all the multi state urban cooperative banks that the Govt. of India has acceded to our request and has sent a clarification circular to registrars of cooperative societies of all the states exempting the multi state urban cooperative banks from the purview of their earlier circular dated 29th May, 2013, read a press release of NAFCUB.
The communique from the Ministry states “ the representation of NAFCUB and multi state UCBs have been examined. On careful consideration of the matter, it has been decided to exempt the multi state cooperative banks from the purview of the aforesaid circular with immediate effects.