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Loans over Rs 5 cr: RBI mandates co-op banks to register quarterly info



Cooperative banks in the state will now have to submit quarterly information on large advances to a central registry in compliance with a Reserve Bank of India (RBI) directive aimed at monitoring credit exposure of primary urban banks.

Reporting of advances to the central registry of information on large credits (CRILC) set up by the RBI is to be done within 30 days of the end of a quarter and is for loans of Rs five crore and above.

RBI has asked urban banks to take utmost care about data accuracy and integrity while submitting the data failing which penal action would be undertaken.

The reports filed by cooperative banks will comprise of three sections of exposure to large borrowers, reporting of technically or prudentially written-off accounts, and reporting of balance in current account. The reporting is to be done in a prescribed format and banks are asked to put in place appropriate systems so as to be ready for increase in frequency of reporting in
the future.

The RBI directive is for banks with total assets of Rs 500 crore and more as on March 31, 2019, and for urban co-operative banks.

Ulhas Phaldesai, chairman of Goa State Cooperative Bank (GSCB) said that the circular does not apply to GSCB since it is the apex bank of cooperatives in the state and as it has several large government accounts above Rs five crore.

“The RBI directive is to discipline large advances of cooperative banks so as to have better control,” explained Desai, managing director of Bicholim Urban Cooperative Bank. He said that Bicholim Urban has only a handful of advances above Rs five crore in its total portfolio of advances. The bank’s net non-performing assets (NPAs) are 0.59 per cent of the total advances, he said.

The RBI directive is aimed at early detection of financial distress and to curb the NPAs of cooperative banks,” added the Bicholim Urban managing director.

The state has six urban cooperative banks – Goa Urban Cooperative Bank, Mapusa Urban Cooperative Bank, Citizen Cooperative Bank, Madgaon Urban Cooperative Bank, Women’s Cooperative Bank and Bicholim Urban Cooperative Bank, of which two urban banks are under RBI directions.

After mining industry closure, the NPAs of most cooperative banks in the state have
shot up.

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