RBI has become positive towards co-op banking: RBI Director Marathe

Celebrating the Amrit Mahotsav year as well as the Co-op Week, Pune based Janata Sahakari Bank organized a discussion program on ‘Economic Current Status of India and Role of Urban Co-operative Banks’, in which, among others, RBI Board member Satish Marathe was present.

Speaking on this occasion Marathe said that the contributions of cooperative banks to the economic development of the country are important and that the Reserve Bank has no policy of closing down small cooperative banks or restricting cooperative banks.

In the changing times, cooperative banks will have to compete fiercely with nationalised as well as private banks. With the passage of time, cooperative banks should adopt technology, focus on bringing more transparency in financial transactions and strengthening cyber security, Marathe added.

While Janata Sahakari Bank CEO Jagdish Kashyap, Vice President Alka Petkar were on the dais, senior banking expert Jayant Kakatkar, Administrator of Maharashtra State Cooperative Bank Vidyadhar Anaskar, Vice President of Maharashtra Urban Co-operative Bank Federation Vaishali Awade, President of Pune District Urban Co-operative Bank

Association Adv Subhash Mohite, Chairman of Cosmos Bank Milind Kale, Chairman of Thane Janata Sahakari Bank Sharad Gangal, Chairman of NKGSB Bank Himangi Nadkarni, Chairman of Solapur Janata Sahakari Bank Sunil Pendse and others participated in the seminar.

Marathe said since the establishment of an independent Ministry of Cooperation at the central level, the attitude of the central government and the Reserve Bank of India towards cooperative banks has become very positive. There is a growing realization that cooperative banks are not only responsible for the economic development of the country but also provide financial support to the common man.

Janata Sahakari Bank CEO Jagdish Kashyap said that the bank is moving very successfully in line with the motto of ‘Sahkaryam Yashodhanam’. If cooperative banks cooperate with each other instead of competing with each other, it can grow at a much faster pace. Cooperative banks should come together and contribute more effectively to the development of the country, he underlined.

Alka Petkar said that cyber security will be one of the biggest challenges faced by cooperative banks in the coming years due to the evolving technology with the changing times. Cooperative banks should work together to meet this challenge.

Vidyadhar Anaskar said that when a customer has small scale transactions, he goes to cooperative banks, but the moment his transactions increase, he tends to go to private and nationalized banks. So, the co-operative banks should work together to ensure customers stick to co-operative banks and their financial needs are met.

Milind Kale said that we should tell the people that the common man has full faith in cooperative banks. Only if trust increases, the deposit in cooperative banks increases and the overall banking business can be strengthened.

Vaishali Awade said that cooperative banks mainly provide financial support to rural businesses and agriculture-friendly businesses. Strengthening cooperative banks can make the rural economy more dynamic. For this, the Reserve Bank and the Central Government should provide more support to the cooperative banks.

Subhash Mohite said cooperative banks are more spread across rural areas than nationalised banks. The common man is connected to these banks with money as well as emotion. Cooperative banks should utilize their goodwill to strengthen the rural economy.

Himangi Nadkarni said that if there are scams in other banks, action is not taken against them. But cooperative banks are dealt with promptly and their banking activities are heavily restricted. Therefore, to change the attitude of the general public towards cooperative banks, the Reserve Bank should relax the restrictions imposed on cooperative banks and interact with them directly to understand their problems.

Sharad Gangal said that since the creation of a separate Ministry of Cooperatives, the RBI’s attitude towards cooperative banks has become very positive, taking advantage of which all co-operative banks should come together and focus on business growth and they should make efforts to strengthen cyber security by increasing the use of technology. Senior banking expert Jayant Kakatkar moderated the seminar. Mr. Amit Ghaisas, director of the bank, moved a vote of thanks.

More than 150 delegates including Chairman, Vice Chairman, Directors, CEO’s of 37 Banks participated in the seminar.