The Reserve Bank of India has strengthened coordination with state registrars for governance and risk control of Urban Co-operative banks, as reported by Business Standard and The Economic Times. At the 3rd Conference of Registrars of Cooperative Societies (RCSs) organised by the RBI on Tuesday, Deputy Governor Swaminathan J emphasized strengthening the supervision, administrative capacity, and regulatory coordination of urban cooperative banks. The meeting was attended by registrars of cooperative societies from various states, the central registrar, and senior RBI officials, leading to shared priorities on governance, technology, and resolution of weak banks in the sector.
Reserve Bank of India Deputy Governor Swaminathan J has emphasised the need for stronger governance and institutional capacity in Urban Co-operative banks, according to reports from Business Standard and The Economic Times. The Deputy Governor highlighted the importance of closer coordination between the RBI and the Conference of Registrars of Cooperative Societies to ensure effective oversight of the sector. Deputy Governor Shirish Chandra Murmu stated that while cooperatives have deep roots in India, the responsibilities and accountability of a cooperative institution increase significantly once it is licensed as a bank. Murmu specifically called for professional and fit-and-proper boards and senior management, robust internal controls, greater technology adoption and timely resolution of weak UCBs.
Deputy Governor Shirish Chandra Murmu emphasized the importance of a professional and suitable board of directors, capable senior management, robust internal controls, greater adoption of technology, and timely resolution of weak UCBs. The conference discussed governance, regulatory, and supervisory issues, including the expectations of RBI and the Deposit Insurance and Credit Guarantee Corporation (DICGC). This focus is crucial at a time when technological upgrades, risk control, and institutional accountability are considered central elements for financial stability in the cooperative banking sector.
According to Deputy Governor Swaminathan J's statements reported by Business Standard and The Economic Times, there is a need to strengthen controls against cyber-enabled frauds in the Urban Co-operative banking sector. The emphasis on cyber security comes as financial institutions increasingly face sophisticated digital threats that require robust protective measures. The RBI has also highlighted the importance of strengthening controls against cyber-enabled fraud and money mule accounts as part of the enhanced coordination framework.
As reported by Business Standard and The Economic Times, Deputy Governor Swaminathan J referred to Mission SAKSHAM as an initiative for capacity building in the sector. This mission appears to be part of the RBI's broader strategy to enhance the operational capabilities and regulatory compliance of Urban Co-operative banks across the country. Central Registrar of Cooperative Societies Shiv Pal Singh also stressed the need for closer coordination between cooperative authorities and the RBI, continued professionalisation of UCBs and timely resolution of banks under liquidation. The mission is specifically focused on capacity building in the sector and represents a key component of the RBI's approach to strengthening the cooperative banking ecosystem.
