Optimism marks NAFCUB’s AGM as Shah led team resolves pending issues

The 47th AGM of the apex body of urban co-op banks and credit co-operatives which was held at the NCUI Headquarters on Saturday, was different in the sense that for the first-time delegates and leaders were appreciative of the government rather than being complaining.

Obviously, in the intervening period between 46th to 47th AGM, NAFCUB leadership were able to achieve a lot for their members, which was summed up well both by its President Jyotindra Mehta and its Chairman Emeritus H K Patil.

The mood was captured by Patil who said that for the first time RBI is talking in a changed tone– from an adversary to a friend. “Thanks to the huge efforts of Jyotindra Mehta and his proximity with Cooperation Minister Amit Shah that the genuine issues of UCBs are being tackled one by one”, stated H K Patil.

Welcoming the delegates Nafcub President Jyotindra Mehta narrated the stories how he and his team have been working behind the scenes with the support of Amit Shah and how the latter roped in both the Finance Minister and the RBI to bring about changes like permission for branch expansion, OTS, Appointment of a dedicated nodal agency, reviving advisory committee, increase in housing loan limits, relief and extension of priority sector lending and many more. Many things remain to be done and we cannot rest, said Mehta, listing easing of SAF, gold loan issue for UCBs, decrease in limit of priority sector lending etc.

Mehta recalled how he with his team went to the Minister Amit Shah with a representation running into 400 pages for the first time after he became the Minister. Shah asked him to come with PPT and called all the top officials and we discussed each issue threadbare in his presence. “Since Amitbhai has been associated with the UCB movement, he understood the issues in no time and thereafter a self-dynamic mechanism of redressing every issue engaging whoever- be it RBI be it Finance Minister, began to roll”, stated Mehta.

Post Madhavpura RBI had stopped us from expanding and refused branch expansion, it was due to Amitbhai’s decisive intervention that many other issues along with this one got resolved, underlined Mehta. Exhorting members to do their bit in achieving the goal of Sahakar se Samriddhi, Mehta said that we must work hard to achieve the dream of Amit Shah of having one UCB in each town after he has ensured that UCBs cannot be treated as second grade citizens.

Mehta also recollected meeting JPC members on the issue of four years vs five years of Board tenure. The JPC called RBI representatives and reminded them of the 97th CAA, and asked them to amend the BR Act. “The RBI has given in writing that a suitable amendment would be carried out”, informed Mehta.

Nafcub President also updated the members on the Umbrella Organization and said that the regulatory approval for the same has been received from the RBI. He also informed that more than 100 banks have committed Rs 117cr along with NCDC giving a sanction letter of Rs 200 crore. “We will get a leverage of Rs 1000 crores by committing just a small amount and this will lead to tremendous growth potential for the sector”, said Mehta exhorting members to get onboard sooner than later as the share is going to be sold on a premium in the future.

In this context Mehta mentioned Nafcub calling a meeting of state federations recently in Delhi which decided to achieve five goals including increasing the market share of UCBs and working on improving the conditions of UCBs which are in C & D categories. “We all have to do so collectively”, said Mehta with a sense of cooperative brotherhood.