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Cooperative Bank: On one hand, the Central Government wants to increase the number of cooperative banks in every city and village of the country, on the other hand, the Reserve Bank of India has stopped issuing licenses for the establishment of cooperative banks for the last 20 years. After the fraud committed by Ketan Parekh in Madhavpura Mercantile Cooperative Bank, since 70 to 80 cooperative banks of Gujarat are defunct, the Reserve Bank has stopped issuing new licenses to start cooperative banks. In such a situation, there is a possibility that the work of granting licenses for the establishment of new cooperative banks can be started any time now.
Over a period of eight years from 1993 to 2001, the Reserve Bank had issued 823 licenses to start co-operative banks. But the financial condition of about 35 percent of these banks became very bad because the management of these banks was not systematic. Perhaps that is why the Reserve Bank stopped granting licenses to start new co-operative banks. The Reserve Bank has said this in its recently released report on the trends and progress of banking in India.
As a result, the number of co-operative banks has declined from 1928 to 1472 in the last 20 years. Meanwhile, the name aims to create a system whereby small and medium-sized enterprises can get loans through cooperative banks in small and big cities. We want to create a system where everyone can get housing and education loans easily and reliably. Similarly, they want to create a system of easy access to credit for agriculture and agriculture related activities. The Reserve Bank is now attempting to increase the number of cooperative banks operating in more than one state instead of cooperative banks operating in only one city or region.