Increase in credit flow through Cooperative Banks | Amit Shah welcomes move by RBI

Increase in credit flow through Cooperative Banks | Amit Shah welcomes move by RBI
Union Home Minister Amit Shah File/ANI

New Delhi: Union Minister for Home and Cooperation, Amit Shah, has welcomed the important steps announced by RBI to increase credit flow through Cooperative Banks

Shah said that in a span of less than a year, Prime Minister Narendra Modi has taken many historic decisions for the cooperative sector, which were needed for a long time.

The Reserve Bank of India has announced three very important policy decisions for the cooperative sector--

Firstly, the limit of individual housing loan has been doubled for Urban Co-operative Banks and more than doubled for Rural Co-operative Banks

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

In another major decision, Rural Co-operative Banks (RCBs) have been allowed to lend to Commercial Real Estate Residential Housing sector

In the third major decision, now Urban Cooperative Banks have been allowed to provide door step banking facility to their customers like commercial banks.

The Union Minister of Cooperation said that on behalf of the Ministry of Cooperation and crores of people associated with this sector, “I express my gratitude to the Prime Minister Narendra Modi for the decisions that have given new impetus to the development of the cooperative sector.”

“There is immense potential for development and empowerment of farmers, agriculture and rural areas of the country in the cooperative sector, that is why under the leadership of Prime Minister Narendra Modi, the Union government has taken many unprecedented decisions to empower the cooperative sector with the mantra of 'Sahakar Se Samriddhi', he said.

“Now in the competitive banking sector, cooperative banks will also get a level playing field. The increase in credit flow to the housing sector through co-operative banks will lead to an increase in economic activity, increase in capital formation and employment generation, which will have a multiplier effect on the economy,” he added.

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