During the Maharashtra State Cooperative (MSC) Bank event held at Mumbai, Pune Urban Cooperative Banks Association Chairman Subhash Mohite made a presentation to Union Minister of State Muralidhar Mohol, highlighting the need for assistance in resolving long-pending issues faced by urban cooperative banks (UCBs).
He addressed the possibility of providing financial help from the Depositor Education and Awareness Fund (DEAF) to support staff training for UCBs and requested a review of the criteria related to disbursing 50 percent advances up to Rs 25 lakh, asking for some relief in this regard.
In addition, Mohite sought the Minister’s intervention to help UCBs, many of which are struggling to meet the Priority Sector Lending (PSL) targets. Failure to meet these targets has resulted in fines being imposed on the banks.
Another request made by Mohite was for either the Central or State government to contribute to the funds of UCBs or allow the amount of income tax paid by these banks to be converted into capital funds.
As of 31st March 2024, there are 427 urban cooperative banks in Maharashtra, with a business mix of over Rs 2.27 lakh crore. Of these, 37 UCBs are currently registering losses.
