Sathish Marathe, director on the Reserve Bank of India board and a veteran cooperative banker, said the central government had issued the Banking Regulation Amendment Ordinance with the objective of boosting the cooperative banking sector as the ordinance provides for protection, transparency, accountability and better governance of cooperative banks in the country. Speaking at the launch of a YouTube channel by Labour Cooperatives under the auspices of Institute of Skill & Developmental Studies in Cooperation (ISCO). an initiative established by Kerala State Labourfed through online platform, he said the purpose of the amendment is to curb the tendency to deceive regulators and businesses. Cooperative banks will not be adversely affected by this amendment, he emphasized, adding campaigns to the contrary may be due to misunderstanding of the amendment or vested interests. It is a member-friendly approach, including removing barriers to lending to members who are directors of cooperative banks and their affiliates, he added. Dispelling doubts expressed by some sections among the cooperative banks, Marathe also said the amendment would make cooperative banks function like commercial banks, and they will be obliged to comply with prudential directives and ensure the safety of investors.
He said the Central Government should now take the initiative to constitute a broad-based committee to prepare a roadmap for the cooperative banking sector and based on the recommendation of this committee, the government should take steps to formulate the necessary vision and unified policy for the cooperative banks across the country. Marathe later inaugurated the YouTube channel. ISCO Chairman Mannadi Anil presided over the meeting. ISCO will now organize an online lecture series from 28 July where Suresh Prabhu, MP and former union minister, Chandrapal Singh Yadav, MP and President, National Cooperative Union of India, Dileep Sanghani, former MP and minister in Gujarat and Chairman, NAFSCOB, Avila Myto Avomi, Chairperson, National Labour Federation, Subramanyam Bheema, President, International Cooperative Bank of Association, and others will be speaking on various topics relating to cooperative banks.
