Pawar bats for urban co-op banks,seeks RBI support

Pawar said it was possible that the money needed for CBS implementation could come from NABARD. “We will discuss this with NABARD and ensure that small banks do not lack support… small banks should consolidate themselves by forming strategic groups,” he said,adding change was needed in UCBs through integration of technology.

State Agriculture Minister Dilip Sanghani alleged that no one in Central government or RBI listened to woes of UCBs and said there should be a level-playing field for UCBs and private banks. He said several cooperative societies were doing exceedingly well but were reluctant to convert into cooperative banks for fear of obstacles.

RBI general manager in urban banking department L M Kamble had some harsh words for UCBs,saying those not willing to reform or merge with better banks would have to be shut. Kamble said UCBs should not expect any help from the RBI.

National Federation of Cooperative Urban Banks chairman H K Patil said CBS would further sharpen competitive edge of UCBs by including those still not covered by private banks. He said only nine per cent of 1,874 UCBs and 330 district banks had changed over to CBS because of costs being a deterrent.

By June 30,2012,UCBs will have their own ATMs when migration of at least 200 to 300 branches to CBS would complete. Commitment from about 100 banks in Gujarat is about to come in two days for migration to CBS,according to Patil.

In his welcome speech,Gujarat Urban Cooperative Bank Federation chairman Jyotindra Mehta said the CBS migration could not be delayed any more if they were to survive the race with others. “Proudly Cooperative” is the branding campaign of UCBs and it will be taken to dairy and other cooperative institutions like Amul and Iffco,he said,adding CBS was a “creative banking support”.

Pawar later told reporters there was no substance in reports appearing in the media that Prime Minister Manmohan Singh has sought a report from his ministry on the vegetable price situation. “We have not been asked to submit any report in this regard,” he said.