RBI will not force mergers of urban co-operative banks: RBI board member

Satish Marathe, founder member of Sahakar Bharati and a member of RBI's central board, clarified that the Reserve Bank of India (RBI) will not mandate mergers of urban co-operative banks (UCBs). 

Speaking at a Maharashtra Economic Development Council (MEDC) conference, Marathe emphasized the need for UCBs to strategize for financial stability and effective management. Historically serving lower and middle-income groups and small businesses, UCBs are facing challenges like rising non-performing assets (NPAs) and losses. 

Marathe outlined key areas for improvement including governance practices, transparency, internal audits, and compliance culture. He stressed the importance of technological upgrades, robust cybersecurity, and continual capital raising to enhance competitiveness. 

Marathe also highlighted the necessity for UCBs to attract and retain qualified professionals to ensure efficient daily operations.