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DICGC Act amendment may encourage merger of weak UCBs with stronger banks

Road ahead for co-operative banks - The Hindu BusinessLine


Road ahead for co-operative banks
January 17, 2021
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The RBI has powers now to regulate UCBs on par with commercial banks. Can depositors hope for a time-bound resolution?
Distressed depositors of several Urban Co-operative Banks (UCBs), including Punjab and Maharashtra Co-operative (PMC) Bank, Sri Guru Raghavendra Sahakara Bank, Rupee Co-operative Bank and Kapol Co-operative Bank, have been at their wits end.
With their hard-earned money stuck in these banks, which got into trouble for various reasons – deterioration in financial position, irregularities and deficiency in governance – the depositors have been desperately looking to the banking regulator for succour.
But the wait to get their money back is becoming excruciatingly long and arduous as the Reserve Bank of India (RBI) keeps extending its directions to these banks (ironically seeking to protect depositors’ interest) by three to six months. Depositors of Mumbai-based PMC Bank and Bengaluru ....

Jyotindra Mehta , Bank Sri Guru Raghavendra Sahakara , National Federation , Sri Guru Raghavendra Sahakara Bank , Kapol Bank , Bank Investment Company , Rupee Bank , Credit Guarantee Corporation , Urban Cooperative Banks , Maharashtra Co Operative , Rupee Co Operative Bank , Kapol Co Operative Bank , Reserve Bank , Finance Minister , Prime Minister , Banking Regulation , Deposit Insurance , Guarantee Corporation , Bank Investment , Punjab And Maharashtra Co Operative Bank , Pmc Bank , ஜயொதின்ற மேத்தா , வங்கி ஸ்ரீ குரு ராகவேந்திரா சாஹாகர , தேசிய கூட்டமைப்பு , ஸ்ரீ குரு ராகவேந்திரா சாஹாகர வங்கி , கபோல் வங்கி ,

Need to consolidate again, NBFCs & co-ops this time


Sixty years ago, in August 1960, two large banks the Lakshmi Commercial Bank and the Palai Central Bank of Kerala failed in quick succession. The banking sector had no regulator then. The then finance minister Morarji Desai was having a gruelling time convincing the RBI to regulate the thousand-odd banks. The central bank refused to do so because it had limited staff and resources and did not have the legal mandate to regulate banks.
The finance ministry had already advised these banks to voluntarily consolidate two years ago, but there were hardly any mergers or acquisitions. Meanwhile, banks were falling like ninepins.  Desai, who had been advocating self-regulation, was forced to make consolidation and amalgamation compulsory so that only strong banks that met the liquidity norms would be allowed to function. ....

Sandip Sen , Morarji Desai , City Bank , Lakshmi Commercial Bank , Palai Central Bank , Banking Companies , Kapol Bank , Rupee Bank , Banking Companies Act , Banking Regulation Act , Asset Quality Review , Kapol Co Operative Bank , Rupee Co Operative Bank , City Co Operative Bank , சண்டீப் சென் , மோறர்ஜி தேசாய் , நகரம் வங்கி , லட்சுமி வணிகரீதியானது வங்கி , பாலை மைய வங்கி , வங்கி நிறுவனங்கள் , கபோல் வங்கி , ரூபாய் வங்கி , வங்கி நிறுவனங்கள் நாடகம் , வங்கி ஒழுங்குமுறை நாடகம் , சொத்து தரம் விமர்சனம் , கபோல் இணை செயல்பாட்டு வங்கி ,