Policy disparity in coop banking still unresolved: Minister

New Delhi: The issue of Reserve Bank of India (RBI) not treating cooperative banks at par with private lenders in certain issues like providing interest subsidy on education loan is being addressed, Union Minister of State (MoS) for Cooperation BL Verma said on Monday.

Addressing an event organised by National Cooperative Union of India (NCUI), Verma stressed on the need to resolve problems being faced by cooperatives to further boost this sector.

"The NCUI president talked about the problem faced due to RBI's different approach towards cooperative banks, such issues have been discussed point-wise with the RBI chief and the Finance Minister. There was a positive discussion and the decision is in the pipeline. That decision will be in our favour," Verma said.

Union Cooperation Minister Amit Shah held a meeting with the RBI chief and the finance minister. "Not only related to education loan but other issues like income tax that were hurdles for cooperatives were discussed in a positive manner," he elaborated while speaking to PTI after the event.

"Why are cooperatives treated differently from the private sector? This issue was kept before them," he added.

Verma said a new ministry for cooperation has been created realising its role in building the nation. Cooperatives can run not only small businesses but also the big ones.

There is a need to upgrade the cooperative banks with technology to provide banking services 365 days. There is also a need to speed up computer training of manpower at cooperatives to function in a professional way, he said.

A cooperative ministry has been created with an aim to expand the cooperative movement in the country from the current level of about 8.60 lakh cooperatives with over 30 crore members, he added.