UCBs of Pune on opposing of banking regulation act

Recently the UCBs of Pune meet and held a meeting regarding passed a resolution vowing to oppose the provisions in the amended Banking Regulation Act. 

 

The meeting was attended by Maharashtra UCBs Federation Chairman Vidyadhar Anaskar, Cosmos Bank Chairman Milind Kale, Pune People’s Cooperative Bank Chairman CA Janardan Randive, Retd Chief General Manager Ratnakar Deole, Janata Sahakari Bank, Pune Chairman Sanjay Lele and other cooperators connected with UCBs. 

 

In his opening remarks Pune UCBs association Chairman Adv. Subhash Mohite said, “There is confusion as to why the ordinance was hastily issued. Section 12 of the BR Act provides for allowing urban banks to issue their shares for sale and non-refund of their shares to existing shareholders which is contrary to the cooperative principles & provisions of the M.C.S. Act.

 

“Therefore, it is not understandable as to whether these banks are under the jurisdiction of the Registrar of Co-operative Societies or RBI”, he addedSeveral other speakers on the occasion said, “The implementation of Section 10 of the BR Act will have a major impact on the Boards of UCBs. Out of the total directors of UCBs, 51 percent are required to be experts in the field mentioned in the Act. The BoM to be set up in the UCBs will not be a shareholders bank”.