Urban Cooperative Banks won’t be treated as second-class: Amit Shah

Assuring the cooperative sector that it will no longer be treated like a “second-grade citizen”, Minister for Home and Cooperation Amit Shah asked the Urban Cooperative Banks (UCBs) to undertake institutional reforms.

Addressing the National Conclave on Scheduled and Multi State Urban Cooperative Banks and Credit Societies, Shah said UCBs account only 3.25 per cent of the total bank deposits and 2.69 per cent of the total advances in the country.

“We should take a resolve to expand this. I assure you that the Narendra Modi government is in power and you will no longer be treated as a second-grade citizen. You should not worry,” Shah said.

“You will be treated on a par. You will not get any special favour but you will not be treated like a second-grade citizen in respect of be it taxation, BR Act [The Banking Regulation Act, 1949] or the Reserve Bank’s norms…. Urban Cooperative Banks will be treated equally,” said Shah, addressing the conclave organised by the National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB).

Shah, however, said that the responsibility of development lies with the cooperative sector.