- In a significant boost for the cooperative banking sector, Pune’s prominent Urban Cooperative Bank (UCB), Vishweshwar Sahakari Bank, has officially been recognized as a Scheduled Bank by the Reserve Bank of India (RBI).
- This exciting news broke on Tuesday, sparking celebrations among the urban cooperative banking community nationwide.
- It’s been over two decades since the RBI granted Scheduled Bank status to a UCB, making this a momentous occasion that signals the revival of a long-awaited process.
- In an exclusive chat with Indian Cooperative, Vishweshwar Sahakari Bank Chairman Anil Gadve shared his enthusiasm about this recognition.
- “Achieving Scheduled Bank status is a major milestone for us.
In a significant boost for the cooperative banking sector, Pune’s prominent Urban Cooperative Bank (UCB), Vishweshwar Sahakari Bank, has officially been recognized as a Scheduled Bank by the Reserve Bank of India (RBI).
This exciting news broke on Tuesday, sparking celebrations among the urban cooperative banking community nationwide. It’s been over two decades since the RBI granted Scheduled Bank status to a UCB, making this a momentous occasion that signals the revival of a long-awaited process.
In an exclusive chat with Indian Cooperative, Vishweshwar Sahakari Bank Chairman Anil Gadve shared his enthusiasm about this recognition. “Achieving Scheduled Bank status is a major milestone for us. It underscores our unwavering commitment to serving our customers and affirms the trust they have placed in us,” he remarked.
Gadve mentioned that the bank had sought this scheduled status nearly two to three years ago, and it was through relentless follow-ups, especially in the past year, that this dream finally came to fruition.
“We see this as a pivotal moment in our journey. It will not only facilitate our growth but also open up numerous opportunities for expansion, partnerships, and involvement in government business,” he added.
With a business mix exceeding Rs 3,800 crore, a net profit of Rs 17 crore, and a network of 30 branches, Vishweshwar Cooperative Bank has already made a solid mark in urban Maharashtra. The bank now aims to extend its reach into rural areas, utilizing its new scheduled status to tap into more opportunities within the banking and financial services landscape.
It’s important to highlight that the RBI had not granted scheduled status to any cooperative bank for over two decades. However, thanks to a renewed initiative by the Union Ministry of Cooperation, particularly under the guidance of Union Home and Cooperation Minister Amit Shah, this process has now been revitalized.
This revival comes on the heels of the Central Government’s decision in 2023 to allow Tier 3 and Tier 4 urban cooperative banks to be included in Schedule II of the RBI Act, 1934, which means they can now qualify for scheduled status.
Several notable UCBs are also eager to achieve this scheduled bank status, including Model Cooperative Bank from Mumbai, Kurmanchal Sahakari Bank in Uttarakhand, Pune People’s Cooperative Bank, Agrasen Cooperative Urban Bank in Telangana, Visakhapatnam Cooperative Urban Bank, and Deogiri Nagari Sahakari Bank.
The green light given to Vishweshwar Cooperative Bank is expected to open the door for more recognitions like this in the near future.
Gaining scheduled bank status not only boosts a bank’s reputation but also allows it to tap into funds at lower rates from the RBI, join the clearinghouse system, and lend to government projects—greatly enhancing its business opportunities.
As of March 31, 2024, out of 1,423 Urban Cooperative Banks, only 49 had achieved scheduled bank status, collectively managing a business mix of about Rs 4.13 lakh crore.