Emerging issues of urban co-operative banks in India

The co-operative movement has not only contributed to economic activity but it continues to socially uplift various segments of the population. The urban co-operative bank (UCB) is among those co-operative organisations that are crucial to providing financial services and supplementing economic growth. Yet, despite their contribution to the financial and banking sectors the UCBs have failed to perform as per expectations over the last decade. Instead of pushing and helping economic activity some urban co-operative banks have affected economic activities negatively, to tlie extent of siphoning off poor peoples' money in some cases. Urban co-operative banks have been exposed to problems including lack of viability, resource mobilisation, monopolisation of their resources by a small group of people that include mainly relatives and friends of directors, lack of proper control and supervision, lack of professionalism and the lack of a techno-savvy environment, among other things. Multiple reporting and controlling authorities give rise to confusion and ineffective control. However, tlie area-wise and population-wise penetration of co-operative banks is both significant and praiseworthy, a fact meriting appreciation.