In touch with authorities to resolve cooperatives’ concerns on RBI regulations: Shah

PTI, Jul 20, 2022, 4:39 PM IST

Cooperation Minister Amit Shah on Wednesday informed Parliament that his ministry is in touch with departments concerned to resolve difficulties being faced by cooperative societies in respect of the RBI regulations.

Shah, who also holds portfolio of Home Affairs, was replying to a question in the Rajya Sabha related to the Reserve Bank of India (RBI) regulations on cooperative bodies.

He said representations received from various quarters, including national cooperative federations such as NAFSCOB and NAFCUB, have highlighted certain difficulties being faced by cooperative bodies in relation to existing regulations of RBI.

Representations have been received from National Federation of State Co-operative Banks (NAFSCOB) and National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB).

”The government is regularly in touch with concerned authorities to resolve such issues within the overall ambit of legislative framework,” Shah said in the written reply.

Cooperative banks were exempt from several provisions of the Banking Regulation Act, 1949. However, amendments to the Act which came into force on September 29, 2020, applied some of these provisions on them, making their regulation under the Act similar to that of commercial banks.