While thanking RBI Board member Satish Marathe and Rajya Sabha member Chandra Pal Singh Yadav for their support to the urban cooperative banking sector in their respective roles, Nafub President Jyotindra Mehta said challenges before the sector continue to be aplenty. Mehta was speaking at the Nafcub’s 44th AGM held at the NCUI headquarters in Delhi on Wednesday.
Making a fresh bid to have a pressure group in the form of “Forum of MPs for Cooperatives”, Mehta recalled two such exercises from the past. One was attended by 60 MPs and the second one by 48, cutting across party lines, Mehta added. For every new term of Lok Sabha, we need to have a fresh Forum, he stressed.
Mehta thanked Marathe for voicing the sector’s concern by openly saying “not enough” on the issue of extension of the BoM deadline. “Similarly, Chandra Pal Singh Yadav, the then RS member collaborated with us when the Banking Regulation Act was being amended. His strong advocacy on the floor of the Parliament made the Finance Minister concede that the co-operative character of UCBs should be protected”, Mehta stated.
Lauding the delegates who braved Corona to come to attend the AGM in Delhi from various parts of the country, the Nafcub President lauded them for their commitment to cooperatives. Mehta’s Presidential speech was noteworthy in the sense that it looked more like talking to the delegates than reading a dry speech.
Listing Nafcub Board’s achievements in the year, Mehta said being a bank of the middle class and poor, the UCB sector did not flinch from its duty during the tough Covid times and went on giving their services. “We also lost some of the stalwarts in the process”, he said.
Talking of other achievements, Mehta recalled Nafcub’s successful struggle to get income tax for co-ops at par with Corporate tax of 22%. He also mentioned the raise in insurance cover from Rs 1 lac to Rs 5 lac, all due to the constant pressure by the Nafcub team.
Many of us donated to PM Care and CM care out of nationalistic outlook during Covid. It was due to Nafcub’s pressure on the govt that even those donations made after March were allowed to be adjusted in the last Financial Year, Mehta recalled.
Asking credit co-ops to get self-regulated to fight off the impression of being unregulated, Nafcub President said that some of them are doing a wonderful job of meeting the financial needs of the poor. At places credit co-ops are bigger than many smaller co-op banks, he underlined.
Noting with satisfaction that so far only five applications have come from the UCB sector to convert to small
banks- a move initiated by the RBI- Mehta said they would be worse off if they bite the bait. Appreciating Vidyadhar Anaskar for starting a “Hath Jodo campaign” before the AGM of one of the UCBs in Mumbai which wanted to convert, Mehta said more such efforts should be made.
Mentioning the formation of Umbrella Organization, Mehta informed that the matter is progressing well and the Ministry has approved its name as proposed by Nafcub. He also exhorted members to get ready to be a part of the Payment System as launched by the RBI recently. “Dates are still there and some of us have joined hands to apply for the same. It is a welcome move”, he said.
Several delegates also spoke on the occasion and put their voices across to the leaders. While Sunil Gupta from Delhi Credit Co-op Federation presented 6 points for consideration, Kishore Shitole, Chairman of Deogiri Urban Co-op Bank of Aurangabad spoke about the dwindling number of original share-holders.
Raghavendra Rao of VCB was critical of Nafcub’s handling of issues and asked the leaders to focus on two issues- dividends to shareholders (stopped by the RBI) and legally challenging the amended B R Act. Ram Babu Shandilya proposed a vote of thanks.
