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The Reserve Bank of India (RBI) hosted the Second Conference of State Registrars of Cooperative Societies (RCSs) at its New Delhi office today. The event was co-chaired by RBI Deputy Governors Shri M. Rajeshwar Rao and Shri Swaminathan J., with participation from senior RBI officials, Registrars from various states, and officials from the Ministry of Cooperation, Government of India.
Deputy Governor M. Rajeshwar Rao highlighted the pivotal role of Cooperative Banks in promoting financial inclusion in rural areas, serving marginalized communities. He underlined that governance and risk management challenges could limit effectiveness and urged closer collaboration between RCSs and RBI to enforce governance standards, address weak banks, and streamline compliance.
Deputy Governor Shri Swaminathan J. stressed coordinated engagement between RBI and RCSs while respecting their respective roles. He noted improvements in financial indicators for Urban Cooperative Banks (UCBs) but emphasized the need for growth in business, asset quality, and liquidity. He called for digital transformation of UCBs, highlighting gaps in IT infrastructure and cybersecurity, and stressed the importance of robust liquidation processes to safeguard depositors’ interests.
Shri Rabindra Kumar Agarwal, Additional Secretary and Central Registrar of Co-operative Societies, proposed forming a stakeholder team to draft model bylaws and frameworks supporting weaker Cooperative Banks, alongside training programs for Liquidators. Shri Pankaj Kumar Bansal, Additional Secretary, lauded RBI’s efforts in strengthening the cooperative sector and emphasized technology-driven support for cooperative banking organizations.
The Conference featured in-depth discussions on regulatory compliance, governance, and expectations of RBI and the Deposit Insurance and Credit Guarantee Corporation (DICGC). An interactive open house session allowed RCSs to engage directly with senior RBI officers, fostering dialogue on improving operational efficiency, cybersecurity measures, and financial stability within the cooperative banking sector.
[RBI]