‘RBI framework may hit urban cooperative banks’

..........H.K. Patil, president, National Federation of Urban Cooperative Banks, on Friday termed the circular issued by Reserve Bank of India (RBI) on “New Supervisory Action Framework” to urban cooperative banks as “a threat to cooperative movement”. Delivering the keynote address at a seminar organised by the Karnataka State Cooperative Urban Banks, he said that the circular would weaken the cooperative movement instead of strengthening that. Clauses such as fixing the credit deposit ratio at 70 per cent, restricting the number of big depositors to 20 and asking them against investing not more than the total deposits and forcing the cooperative banks to invest in government securities were being viewed as hurdles in the growth of the cooperative banks, he said............

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