Regulator for urban co-op banks soon
By Our Banking Bureau | 06 May 2002
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New Delhi: Finance Minister Yashwant Sinha has said the central government is examining the Reserve Bank of Indias (RBI) proposal to set up a separate apex supervisory body to take over the entire regulatory and inspection functions relating to urban cooperative banks (UCBs).
We are yet to take any decision on having a separate supervisory authority for regulating cooperative banks, Sinha told newspersons during a felicitation function organised by the National Cooperative Union of India (NCUI) here.
We are yet to take any decision on having a separate supervisory authority for regulating cooperative banks, Sinha told newspersons during a felicitation function organised by the National Cooperative Union of India (NCUI) here. NCUI president Dr S S Sisodia said: UCBs are part and parcel of the countrys banking structure and, therefore, any separate arrangement for their regulation is bound to alienate them from the mainstream.
The RBI has already submitted a draft bill on setting up a separate supervisory authority for scheduled and non-scheduled UCBs, which, it feels, is necessary in the light of the series of scams involving these banks, starting with Madhavpura Cooperative Bank in Ahmedabad, Krushi Cooperative Bank in Hyderabad and, more recently, Nagpur District Central Cooperative Bank.
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