Urban cooperative banks need to evolve digitally RBI DG

New Delhi, Nov 14 (PTI) Reserve Bank of India (RBI) Deputy Governor Swaminathan J on Thursday stressed the need for urban cooperative banks to evolve digitally, addressing IT and cybersecurity gaps as he highlighted the importance of improving the liquidation process to protect depositors' interests.
     Speaking at the Second Conference of State Registrars of Cooperative Societies (RCSs) here, Swaminathan also stressed the importance of coordinated engagement between the RBI and registrars of co-operative societies, respecting each other's roles.
     While financial indicators for UCBs have improved, he noted room for growth in business, asset quality, and liquidity, he said.
     The RBI said the 2nd Conference of State Registrars of Cooperative Societies (RCSs) was co-chaired by RBI Deputy Governors M Rajeshwar Rao and Swaminathan and attended by senior RBI officials.
     Deputy Governor Rao highlighted cooperative banks' crucial role in financial inclusion, especially in rural areas, by serving marginalised communities.
     He emphasised that governance and risk management challenges could hinder effective management and urged stronger collaboration between the RCSs and the RBI to enforce governance standards, resolve weak banks, and streamline compliance.
     Rabindra Kumar Agarwal, Additional Secretary, Ministry of Cooperation and Central Registrar of Co-operative Societies (CRCS), and Pankaj Kumar Bansal, Additional Secretary, Ministry of Cooperation, too, participated in the conference, along with the registrars of cooperative societies from various states.
     Agarwal proposed forming a stakeholder team to draft a model bylaws and a framework to support weaker cooperative banks and highlighted the need for training liquidators.
     Bansal acknowledged the RBI's efforts in strengthening the cooperative sector and emphasised the importance of supporting the umbrella organisation to enhance cooperative banks, particularly in technology.
     Discussions during the conference revolved around regulatory and governance issues in urban cooperative banks and the expectations of the central bank and the Deposit Insurance and Credit Guarantee Corporation (DICGC), the RBI said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)