The Reserve Bank of India held the Second Conference of State Registrars of Cooperative Societies (RCSs) at its New Delhi office on November 14, 2024, in which a collaborative approach between RCSs and RBI to uphold governance standards was discussed, among other issues.
Co-chaired by RBI Deputy Governors Shri M. Rajeshwar Rao and Shri Swaminathan J., the event brought together senior RBI officials, Rabindra Kumar Agarwal, Additional Secretary, Ministry of Cooperation and Central Registrar of Cooperative Societies (CRCS), and Pankaj Kumar Bansal, Additional Secretary, Ministry of Cooperation, alongside Registrars of Cooperative Societies from multiple states.
Deputy Governor Rao underscored the pivotal role of Cooperative Banks in advancing financial inclusion in rural and underserved regions. He highlighted governance and risk management as key challenges for these banks, advocating for a collaborative approach between RCSs and RBI to uphold governance standards, resolve weak institutions, and improve regulatory compliance.
Deputy Governor Shri Swaminathan J. called for coordinated efforts between the RBI and RCSs to strengthen urban cooperative banks (UCBs), with respect for each entity’s role.
Although UCBs have shown progress in financial indicators, he pointed to the need for further improvement in business development, asset quality, and liquidity. He urged UCBs to enhance their digital capabilities, addressing cybersecurity gaps, and emphasized a more effective liquidation process to protect depositors.
Rabindra Kumar Agarwal, Additional Secretary and CRCS, proposed establishing a stakeholder group to draft model bylaws and a support framework for weaker Cooperative Banks, along with liquidator training initiatives.
Pankaj Kumar Bansal highlighted the RBI’s ongoing efforts in strengthening the cooperative sector and stressed the importance of supporting the Umbrella Organisation to advance Cooperative Banks, particularly in technological integration.
The Conference discussions focused on regulatory and governance issues within UCBs, as well as expectations from the RBI and Deposit Insurance and Credit Guarantee Corporation (DICGC).
An interactive open house session provided RCSs and senior RBI officials an opportunity to engage directly on key challenges and strategies.