Urban cooperative banking sector to benefit from RBI's supportive reforms, says Amit Shah

Union Minister Amit Shah addressed the inauguration of the new premises of the National Urban Cooperative Finance and Development Corporation in Mumbai, stating that the Reserve Bank of India has adopted a collaborative stance toward urban cooperative banks in recent years. He called for a partnership built on greater confidence and trust, urging both sides to move beyond long‑standing assumptions. Shah cited several RBI steps, including relaxed rules on branch expansion, authorisation for doorstep banking services, permission for UCB to issue demand drafts and life certificates, and the appointment of a dedicated nodal officer for the sector. He welcomed regulatory enhancements such as higher gold‑loan limits and the introduction of a one‑time settlement scheme. According to Shah, urban cooperative banks now hold deposits exceeding INR 6 lakh crore. He recalled his own experience as a cooperative bank chairman in Gujarat, where loans up to INR 2.5 lakh were granted without guarantees and achieved a recovery rate above 99 percent. The minister urged cooperative banks to deepen ties with the National Urban Cooperative Finance and Development Corporation, suggesting reduced membership fees so that about 1,400 urban cooperative banks across India could become members. Currently, only around 690 banks are part of the corporation. Shah also announced that the corporation’s headquarters will be relocated from New Delhi to Maharashtra, a state that houses 449 urban cooperative banks, representing roughly 70 percent of the sector.