Amit Shah urges urban cooperative banks to embrace Banking Regulation Act

New Delhi: Union Minister Amit Shah on Thursday urged urban cooperative banks not to consider the Banking Regulation Act as a hurdle, but as an opportunity to grow and become competitive in the banking sector. Addressing an felicitation event organized by the National Federation of Urban Cooperative Bank and Credit Societies (NAFCUB) here, Shah said the future belongs to the cooperative sector and the urban cooperative banks (UCBs) have a key role in empowering 60 crore people who aspire to contribute to the country's economy.

BR Act Not a Hurdle, But an Opportunity

Shah said it was said that the BR Act is like a double sword for UCBs. However, he clarified that the BR act will only protect the banks and urged them to believe in him. He asked UCBs not to see the BR act as regulation but as a ray of light that will help the cooperative banking sector develop at par with private banks.

Need for Professionalism and Transparency

To become competitive, Shah said UCBs should change with time and bring professionalism, transparency and meet financial parameters. He warned that without these changes, UCBs cannot survive in the competitive banking sector. He emphasized that the government will not save the banks and they must prepare themselves for competition.

Umbrella Organization for UCBs

Shah also shared that he has asked the RBI governor to treat UCBs with credibility in order to launch the concept of UCB across the country. He mentioned that other concerns raised by NAFCUB related to UCBs will be taken up with the RBI governor soon. He assured that more measures will be announced soon for UCBs.

Huge Opportunity for UCBs

Stating that the UCBs have a huge opportunity to expand their business, Shah said, "You should take advantage of the opportunity else we cannot change the perception that cooperative banking is a dying sector."

Landmark Development for UCB Sector

NAFCUB President Jyotindra Mehta said the RBI's recent approval for the formation of a national umbrella organization for the UCB sector in India is a landmark development and a great opportunity for India's 1,514 UCBs. NAFCUB facilitated the minister for the landmark decisions taken in favor of UCBs.

Union Minister Amit Shah's call for urban cooperative banks to embrace the Banking Regulation Act as an opportunity for growth and competitiveness is a significant step towards strengthening the cooperative banking sector in India. With the support of the government and the implementation of necessary reforms, UCBs can play a vital role in empowering millions of people and contributing to the country's economy.