The body of cooperative banks thwarted by central law – the New Indian Express
THIRUVANANTHAPURAM: In protest against changes to the banking regulation law in June 2020, the Federation of Urban Cooperative Banks of Kerala held a sit-in and protest march in front of Raj Bhavan on Wednesday.
The organization was also protesting against strict restrictions placed on urban cooperative banks by the Reserve Bank of India (RBI) citing an increase in non-performing assets. The organization alleged that this was all a conscious move to destabilize the state’s cooperative banking sector. The president of the UDF, MM Hassan, inaugurated the demonstration.
Even though cooperative laws are state matters, the central policies and reserve bank policies put in place to control the cooperative banking sector were unconstitutional, the organization said. He was critical of anti-democratic laws that gave the RBI the right to dissolve the chosen administrative committee in a democratic process. The protest was held against six of the reforms and policies aimed at empowering the RBI to effect change in the cooperative banking sector.
The organization called the RBI’s power to merge an urban bank with another bank without the consent of the state government undemocratic. The group also raised concerns over the power of the RBI to call a general meeting of banks and hold elections within the bank, among others.