Indore, June 28 (UNI) President Pratibha Devisingh Patil today urged the Reserve Bank of India and National Federation of Cooperative Banks to explore possibilities of readying a practical network of urban cooperative banks.
''In view of the large number of regulatory hurdles being confronted at lower level by cooperative banks, there is a need for tying these institutions by a common thread and creating specific institutes to control banks,'' she said while addressing a function to mark the Indore Paraspar Sahakari Bank's centenary.
Such institutes would have to be strong, provide cash assistance, develop financial sources favourable for customers, establish contacts between urban cooperative banks and financial markets and specialise in helping small urban cooperative banks, Ms Patil said.
''Later, such institutes would emerge as self-regulated institutes in the sector. Several such model banks are functioning in many countries,'' she added.
Stressing on creation of transparent and progressive boards in cooperative banking institutes, the President said that they should include such persons who enjoy prestige at local level, are honest and have a concept for the bank concerned.
''I urge the banks to include adequate numbers of women in their boards and management and extend loans to needy women of society's lower segments to assist their economic empowerment. Skilled and capable people should be appointed for running banks and be given freedom to tackle complexities of modern banking,'' she added.
Maintaining that the steps would enhance banks' efficiency, Ms Patil added that urban cooperative banks would thereby retain people's confidence and could become the principal system of financially mediation for the middle class and limited earners in cities and towns through adopting improved technology.
Referring to her previous association with a national federation of urban cooperative banks and loan committees, the President said, ''limitless possibilities exist in every district and tehsil for institutes such as urban cooperative banks.'' UNI Team-AC 2017