- The National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) has reached out to 42 selected cooperative credit societies, encouraging them to apply for a banking license from the Reserve Bank of India (RBI).
- This initiative comes after the establishment of a Task Force (TF) led by D.
- Krishna, set up at the request of the Ministry of Cooperation, Government of India.
- The Task Force is tasked with examining the “transformation of urban cooperative banks and credit societies.” As part of its work, the Task Force carried out an initial assessment of medium and large credit societies nationwide.
- They evaluated these societies based on factors like capital base, deposit size, and important financial ratios.
The National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB) has reached out to 42 selected cooperative credit societies, encouraging them to apply for a banking license from the Reserve Bank of India (RBI).
This initiative comes after the establishment of a Task Force (TF) led by D. Krishna, set up at the request of the Ministry of Cooperation, Government of India. The Task Force is tasked with examining the “transformation of urban cooperative banks and credit societies.”
As part of its work, the Task Force carried out an initial assessment of medium and large credit societies nationwide. They evaluated these societies based on factors like capital base, deposit size, and important financial ratios. After this review, the TF pinpointed 42 societies that have the potential to successfully transition into Urban Cooperative Banks (UCBs).
In its regular reports to the Ministry of Cooperation, the Task Force provided the list of these credit societies. Acting on their recommendations, the Ministry instructed NAFCUB to officially invite the shortlisted societies to submit their applications for a banking license. One of the societies identified is the Select Cooperative Thrift & Credit Society.
According to an official communication, which the Indian Cooperative has access to, NAFCUB has asked these societies to pass a board resolution and have it ratified by their General Body, confirming their desire to pursue a banking license.
After that, the societies are advised to write to the RBI Central Office, with a copy sent to their respective Regional Office, indicating their interest in becoming a UCB.
They are also encouraged to hire a qualified consultancy firm to help prepare and submit their application in Form III A, in accordance with Rule 6(a) of the Banking Regulation (Cooperative Societies) Rules, 1966, and Section 22 in conjunction with Section 56 of the Banking Regulation Act, 1949.
NAFCUB has promised to provide the societies with the essential guidance and support they need throughout the process.
Sources indicate that the societies on the shortlist include Dharmapeth Mahila Multi-State Credit Co-op, Aditya Anagha Multi-State Credit Cooperative, Shri Beereshwar Cooperative Credit Society, Citizen Cooperative Society in Hyderabad, and Godavari Urban Multi-State Credit Cooperative, among others.