In an empowering address, Dr. H. K. Patil, Karnataka Minister for Law, Tourism & Parliamentary Affairs and NAFCUB Chairman (Emeritus), has called on the Reserve Bank of India (RBI) to shift from a “closure mindset to a revival model” in dealing with stressed Urban Cooperative Banks (UCBs) at the inauguration of CoopKumbh.
Addressing the gathering in the presence of Union Home and Cooperation Minister Amit Shah, Dr. Patil praised the Ministry of Cooperation’s active engagement with NAFCUB and the RBI in addressing sectoral challenges but emphasised that much more remains to be done to ensure long-term sustainability.
Citing the successful revival of Yes Bank as a model, Dr. Patil said, “When systemic stability is at stake, institutions rise above competition.”
He urged a similar collaborative framework to rescue financially distressed UCBs, emphasising that regulators and managements share equal responsibility for corrective action.
Dr. Patil also called for a review of Section 80(P)(4) of the Income Tax Act, arguing that cooperative banks serve vital social and economic roles that far outweigh the modest tax revenue they generate.
Highlighting the theme “Digitalizing Dreams, Empowering Communities,” he underscored the need for cooperatives to embrace digital transformation, strengthen MSME lending, and adopt global best practices from countries like Germany, Japan, and the Netherlands.
Applauding the Ministry’s initiatives, such as PACS modernisation and the establishment of new national-level cooperatives, Dr. Patil expressed confidence that NUCFDC, under NAFCUB’s leadership, will help drive sustainable 10 per cent annual growth through technology and financial support.
He concluded by affirming that under Amit Shah’s leadership, the cooperative movement is entering “a new era of trust, transparency, and transformation,” reaffirming its role as a people-driven model for inclusive growth.
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