Cooperators of Maharashtra associated with cooperative banks have begun to react to the inclusion of Non-Scheduled UCBs, StCBs, and DCCBs as member lending institutions by the CGTMSE. One of them has welcomed the move whereas others have raised questions on the creation of Gross NPA of banks.
Jijau Commercial Cooperative Bank Chairman Er Avinash Kothale said, “Its welcoming step to make eligible Non-Scheduled Co-Operative Banks under CGTMSE but the condition of Gross NPA of 5%or less needs to be modified as all banks are facing problems of Gross NPA more than 5% however net NPA be asked less than 6% &GNPA 10% which RBI had earlier sanctioned. Or the banks which are disbursing dividends be given this extra facility of CGTMSE”.
Pune People’s Cooperative Bank Former Chairman Janardan Randive said, “Criteria of Gross NPA of Banks is an injustice to the entrepreneurs. They have nothing to do with Bank Financials. The Entrepreneurs should get the financial assistance on their merits”.
Earlier, reacting to the news, NAFCUB President Jyotindra Mehta said “On behalf of NAFCUB and the entire urban cooperative banking sector, I am thankful to the Hon’ble Finance Minister and Hon’ble Minister for MSMEs, for inclusion of non-scheduled cooperative banks by the CGTMSE as eligible banks for the guarantee cover.”