Pune: The recently appointed RBI Director Satish Marathe on Monday said that there is a scope of development of over 5,000 urban cooperative banks (UCBs) in India. Marathe was speaking to media persons on Monday at Patrakar Bhavan.
“With nearly 1,500 UCBs in India catering to such huge population, there is a large scope of the opening of new cooperative banks in India. The country also has a large number of new cities coming up and hence, UCBs will certainly help, he said.
“A country like France has over 4,000 banks and in India, there are over 300 districts, where there is no cooperative bank. In states like Kerala, they are closing cooperative banks which are making profits, which is not a good sign,” added Marathe.
The director said that cooperative banks should be allowed to raise capital after listing their bonds on the stock exchange. “People can buy this bond and can earn a premium on it,” added Marathe.
Speaking on mergers of banks in India, Marathe said that people need funds for business and there are very few banks falling in the category of large banks and hence, mergers of banks is a good option. Speaking on the need for changes in the act related to cooperative banks, Marathe said that the act is century old and hence, there is a need for change in the act.
Speaking on lack of government manpower to audit lakh of cooperative societies, Marathe said that the authorities need not audit each and every society. “They should audit only those societies which matter to a large number of people and certainly such societies will be less in number. All one has to do is check the audit report and annual report of these societies,” added Marathe.