New Delhi [India], June 9 (ANI): Union Minister for Home and Cooperation Amit Shah on Thursday welcomed the important steps announced by the Reserve Bank of India (RBI) to increase credit flow through cooperative banks.
Expressing gratitude to Prime Minister Narendra Modi, Shah said, that in a span of less than one year PM Modi has taken many historic decisions for the cooperative sector, which were needed for a long time.
“On behalf of the Ministry of Cooperation and crores of people associated with the cooperative sector, I express my gratitude to Prime Minister Narendra Modi for the decisions that have given new impetus to the development of this sector,” he said.
The Home Minister further said that these decisions will fulfil the long-standing demands of Co-operative Banks.
“Today I am extremely happy to inform that the Reserve Bank of India has announced three very important policy decisions for the cooperative sector,” he said.
Referring to the RBI decision to allow Rural Cooperative Banks (RCBs) to lend to commercial real estate and residential housing sector, he said that this will increase the scope of our Rural Co-operative Banks and also give impetus to the resolution of providing affordable houses to the people.
Shah said the individual housing loan limit for Urban Co-operative Banks has been doubled.
“With this decision, the individual housing loan limit for Tier 1 Urban Cooperative Banks (UCBs) has now been increased from Rs 30 lakh to Rs 60 lakh, for Tier 2 UCB from Rs 70 lakh to Rs 1.40 crore and for Rural Cooperative Banks (RCBs). The limit has been increased from 20 lakhs and 30 lakhs to 50 lakhs and 75 lakhs respectively,” he said
He further said that now Urban Co-operative banks have been allowed to provide doorstep banking facilities to their customers like commercial banks.
“With this decision, cooperative banks will now get a level playing field in the competitive banking sector and they will also be able to provide door-to-door banking facilities to customers like other banks. The increase in credit flow to the housing sector through cooperative banks will lead to an increase in economic activity, increase capital formation and employment generation, which will have a multiplier effect on the economy,” he added.
He also said that many old demands and problems of the cooperative sector have been resolved since the formation of the new Ministry of Cooperation.
The Minister also said that the cooperative sector has immense potential for the development and empowerment of farmers, agriculture and rural areas of the country.
“Therefore, under the leadership of Prime Minister Narendra Modi, the Central government is empowering the cooperative sector with the mantra of ‘Sahakar Se Samriddhi’ and has been taking many unprecedented decisions,” he added. (ANI)