Urban Cooperative Banks

• Vaid's ICS, Lucknow
• 13, Dec 2021

Why in news?

Reserve Bank of India (RBI) Governor has indicated that the RBI will bring regulatory changes to reform urban cooperative banks (UCBs).

• UCBs have been plagued by a series of failures.
• RBI has also warned people against depositing their savings in banks offering high returns.

What is an Urban co-op bank?

• The term Urban Co-operative Banks (UCBs) refers to primary cooperative banks located in urban and semi-urban areas.
• These banks were traditionally centred around communities, localities and workplace groups. They essentially lent to small borrowers and businesses. Today, their scope of operations has widened considerably.

Difference between UCBs and Commercial Banks

• Regulation: Unlike commercial banks, UCBs are only partly regulated by the RBI.
• Banking operations of the UCBs are regulated by the RBI, but  their management and resolution in the case of distress is regulated by the Registrar of Co-operative Societies either under the State or Central government.
• Borrower can be a Shareholder: In a commercial bank, there is a clear distinction between its shareholders and its borrowers whereas in a UCB, borrowers can even double up as shareholders.

FACTS FOR PRELIMS:

NATIONAL HELPLINE AGAINST ATROCITIES (NHAA)

The Ministry of Social Justice and Empowerment is scheduled to launch a National Helpline Against Atrocities (NHAA) on 13th Dec 2021.

• Aim is to ensure proper implementation of the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities){PoA} Act, 1989 which was enacted with a view to, inter-alia, preventing atrocities on members of Scheduled Castes (SCs) and Scheduled Tribes (STs).
• The NHAA will be available round the clock on toll-free number 14566 across the country.
• It can be accessed by making a voice call /VOIP either from a mobile or land line number of any Telecom Operator across the country.
• This service will be available in Hindi, English and regional language of the State/UTs. Its Mobile application will also be available.
• Available as a web based self-service portal also, the NHAA will generate awareness about the Protection of Civil Right (PCR) Act, 1955 and its rules as well.
• A Docket number shall be given for each complaint received from Victim/Complainant/NGOs regarding non-compliance of the POA Act, 1989 and the PCR Act, 1955. The status of the grievance can be tracked by complainant/NGOs online.

NEW CALEDONIA

Voters in the French island territory of New Caledonia chose overwhelmingly to remain part of France, in a referendum boycotted by pro-independence forces and closely watched around the South Pacific.

• New Caledonia is a sui generis collectivity of overseas France in the southwest Pacific Ocean, south of Vanuatu, about 1,210 km east of Australia, and 17,000 km from Metropolitan France.
• The archipelago, part of the Melanesia subregion, includes the main island of Grande Terre, the Loyalty Islands, the Chesterfield Islands, the Belep archipelago, the Isle of Pines, and a few remote islets.