UCBS have to focus on symmetric growth: Shah
New Delhi, June 23: Asserting that urban cooperative banks (UCBS) need to focus on symmetric development, cooperation minister Amit Shah on Thursday asked UCBS to undertake key reforms including hiring young talent and adopting modern banking methods in order remain competitive.
Structural changes, strengthening of human resources, computerising accounting process, hiring experts to handle surplus funds are the other reforms that UCBS need to undertake in order to compete with nationalised and private banks, the minister said.
By implementing these reforms, the UCBS should make themselves more relevant in the current times, the minister said and assured that cooperative banks will not be treated like a "second grade citizen".
"There are 1,534 urban cooperative banks, 54 scheduled urban cooperative banks, 35 multi-state cooperative banks, 580 multi-state cooperative credit societies, 22 state cooperatives. We have a wide presence but it is uneven... We need to properly work on symmetric development of urban cooperative banks," Shah said addressing an event here.
Since cooperative banks are the only banks that lend to the lower strata of the society, there is a need to set up at least one UCB in every town in the country, he said and directed the National Federation of Urban Cooperative Banks and Credit Societies (Nafcus) to focus on symmetric development of UCBS across India.
"Symmetric expansion will help us remain in the competition. Successful banks should also come forward and contribute to this," he said.