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Cooperative banks and non performing assets (in Hindi)
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Cooperative banks and non performing assets in Hindi

Aartee Mishra is teaching live on Unacademy Plus

Aartee Mishra

Unacademy user
Appointment by good control and mointering process
Only single control or effective by state or rbi
Rural Cooperative Banks should be brought under RBI (for uniformity of regulations)
end their dual control and make them under RBI
Independence of cooperative bank no pol pressure,intail time less interest
  1. aily Lectuire Series Ramesh Singh's brief summary o unacadeny Indlian Economy Aartee Mishra Banking in India-D Hindi


  3. COPERATIVE BANKS Banks in India can be broadly classified under two heads-commercial banks and co-operative banks. While commercial banks (nationalised banks, State Bank group, private sector banks, foreign banks and regional rural banks) account for an overwhelming share of the banking business, co-operative banks also play an important role. Initially set up to supplant indigenous sources of rural credit, particularly money lenders, today they mostly serve the needs of agriculture and allied activities, rural-based industries and to a lesser extent, trade and industry in urban centres. Co-operative banks have a three tier structure I. Primary Credit Societies-PCSs (agriculture or urban) Il. District Central Co-Operative Banks-DCCBs IlI. State Co-Operative Banks-SCBc (at the apex level]).

  4. PROBLEMS WITH COPERATIVE BANKS Regulation remains the biggest issue as they are under dual regulatory contro-the UCBs come under the RBI and the Registrar of Cooperative Societies (RCS) of the respective states Given the close links between politicians and co-operatives and the fact that the RCS functions under the state government, in practice this dual (or triple) custody of the co-operative banks has, in practice, led to poor supervision and control Besides, most co-operative banks are lacking in skill and expertise Recruitments are politicized as are appointments at most levels Income recognition and prudential norms that were introduced for commercial banks in the early 1990s (under the process of banking reforms) are still to be this sector

  5. NON-PERFORMING ASSETS Non-Performing Assets (NPAs) are the bad loans of the banks. The criteria to identify such assets have been changing over the time > In order to follow international best practices and to ensure greater transparency, the RBl shifted to the current policy in 2004 Under it, a loan is considered NPA if it has not been serviced for one term (i.e., 90 days). This is known as '90 day overdue norm. For agriculture loans the period is tied with the period of the concerned crops-ranging from two crop seasons to one year overdue norm

  6. Resolution of the NPAs RBI has implemented a number of schemes to facilitate resolution of the NPAs problem of the banks Refinancing: Under this scheme lenders were allowed to extend the tenure of loans to 25 years with interest rates adjusted every 5 years, so tenure of the loans matches the long gestation period in the sectors. The scheme thus aimed to improve the credit profile and liquidity position of borrowers, while allowing banks to treat these loans as standard in their balance sheets, reducing provisioning costs against NPAs ARCs (Asset Reconstruction Companies): ARCs were introduced to India, as specialists to resolve the burden of NPAs. But the ARCs (most are privately- owned) finding it difficult to resolve the NPAs they purchased, are today only willing to purchase such loans at low prices. As a result, banks have been unwilling to sell them loans on a large scale. SDR (Strategic Debt Restructuring): stressed assets were restructured and sell them to the highest bidders-ownership change takes place in it

  7. Ancient & Medieval History From Harappa to Revolt of 1857 with brief Art and Culture (Prelims & Mains) ^ unacademi Aartee Mishra Detailed Coverage of each and every topic from Ancient to Medieval India Short Crisp Notes for better Revision Test Series Course Starting from, 30th July 9:30pm-10:30pm on Unacademy Plus

