Urban Cooperative Bank Case Study
The Urban Cooperative Banks, by implication, have to be affiliated to District Central Cooperative Bank (DCCB) at district level and to State Cooperative Bank (SCB )at apex level and these banks, in turn, were supposed to help, nurse and guide the UCBs. Historically, UCBs were organised in semi-urban, urban and metropolitan centres. This was the reason why they came to be popularly known as urban cooperative banks. However, the co-operators, UCBs and their federations have, strongly pleaded for deleting the word 'primary' from the statute in view of phenomenal increase in their size and operations surpassing even District Central Cooperative Banks (DCCBs). This issue is examined later in Chapter …show more content…
A class of urban cooperative banks, which are popularly called, Salary Earners Banks also emerged as a matter of course and had their own place in the urban cooperative banking system over the years. These banks are essentially thrift societies set up by employees of governmental departments/ PSUs/large establishments for mutual help on the principles of cooperation. These societies also started using the word 'bank' and were accepting deposits from members of public.
Since Reserve Bank of India did not find any rationale for their continuing as banking entities, as they were essentially thrift societies, they were advised to go out of the purview of the B.R. Act, after returning the deposits to non-members. As a result, 599 salary earners banks went outside the purview of the B.R. Act, during the period 1 March, 1966 to 30 June, 1977 by converting themselves in to cooperative credit societies. Marathe Committee had also endorsed this view. As on 31 March, 1999 there were 90 salary earners