The state government will bring major reforms by amending relevant laws to recover long-pending loans and check cyber frauds in the cooperative banking sector, Chief Minister Devendra Fadnavis said on Thursday.
The cooperative banks have played a significant role in the development of Maharashtra. But recovery of loans, cyber crimes and administrative operations have posed new challenges to the sector, he said. “The government is willing to bring amendments in existing laws to streamline the working in cooperative sector banking. From poor loan recovery and debts to growing concerns over cyber crimes will be addressed through the new guidelines, which would be incorporated in the Act,” he added.
Fadnavis was speaking at the Digital Banking in Cooperative Sector conclave organised by Loksatta (The Indian Express Group) in Mumbai on Thursday. Finance Minister Sudhir Mungantiwar and RBI Director Satish Marathe too shared the dais with him.
The CM said that the sector will have to embrace advanced technology to bring in greater accountability and transparency. The cooperative bank has emerged as a credible alternative to moneylenders who often exploited ordinary people and farmers, he added.
“Despite recurring challenges, cooperative banks have made progress. However, RBI’s new guidelines, cyber security and cooperative rules bring new challenges which will have to be addressed to streamline and simplify the process,” he said.