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The Urban Cooperative Bank

The prime objective of the Urban Cooperative Banks is to render minimum baking services of urban and semi-urban areas with a view to creating opportunity for self-employment.  

12 Urban Cooperative Banks functioning in the State are providing finances for Self-employment to the unemployed youths and other minimum banking services like acceptance of deposit etc. in urban and sub-urban areas. During the year 2009-10, The Dhenknal Urban Cooperative Bank was liquidated in pursuance of the direction of the RBI. Bhadrak UCB was also not permitted by RBI for under taking banking activities. Achievement in this sector is furnished below.

Statutory authority :

The Urban Cooperative Banks function under the control and supervision of two authority i.e. the Reserve Bank of India and the Registrar of Cooperative Societies, Odisha. The RBI is the regulatory authority in respect of Sec.l 1 , Sec. 18, Sec.24 and Sec.35 of the B.R.Act.

The R.C.S., Odisha is the statutory authority in respect of Sec.28, Sec.29, Sec.32, Sec.64 , Sec.65, Sec.68 , & Section 103 of the OCS Act,1962.

B.R. Act:
Secction - 11 Net worth of the Bank should not be less than Rs. 1 .OOlakh
Secction - 18 Maintenance of minimum cash Reserve Ratio
Secction - 24 Maintenance of statutory liquidity Reserve
Secction -25 Inspection by the RBI

O.C.S. Act:
Secction - 28 Committee of Management of UCB
Secction - 29 Annual General Body Meeting of the Coop. Society
Secction - 32 Supervision of the committee of management of Coop. Societies.
Secction - 64 Inspection of Cooperative societies
Secction - 65 Inquiry into the irregularities in coop, societies
Secction - 68 Dispute relating to constitution, management and business of Coop. Societies
Secction - 103 Execution of proceedings passed by the Court.

Out of the 13 Urban Cooperative Banks functioning in the State, 7 UCBs are earning profit. 6 UCBs are in loss. Financial status of all the UCB is enclosed in the statement.

1. Dhenkanal UCB.

Dhenkanal UCB has been put under liquidation by R.C.S.,Odisha vide order No.3663 dated 17.2.2010 on receipt of requisition from RBI under section 133-A (ii) of the O.C.S.Act, 1962. The D.R.C.S.,Dhenkanal has been appointed as Liquidator of the Bank. As on the date of liquidation, the Bank has to refund Rs. 188.24 lakhs to 1085.89 depositors. As the Bank is an insured Bank, claim statement for 11098 deposited accounts amounting to Rs.828.99 lakhs have been submitted by the Liquidator to the DICGC , Mumbai. Against the liabilities of the Bank, there are Rs. 1078.79 lakhs outstanding on 559 members in shape of loans.

2. Bhadrak UCB.

The RBI after rejecting the application of license for doing banking business made requisition under section 133-A(ii) of the Act to put the Bhadrak Urban Coop.

Bank under liquidation. Due to pendency of various litigations in different Courts the liquidation order has not yet been issued. Even though the tenure of the last management expired since 22.6.2008 and Authorised Officer has been appointed, the Authorised Officer i.e. A.R.C.S.,Bhadrak could not be able to function as the Management due to various litigations in different Courts. Although the Bank had been registered as an insured Bank under DICGC Act, no premium has yet been deposited in the DICGC ,Mumbai. Presently the Bank is at dormant /non-functional stage.

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Dr. Damodara Rout
Hon'ble Minister,Cooperation & Excise



Shri Manoj Ahuja,
I.A.S., Principal Secretary,Co-operation



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Success Story

Co-operation Department remained part of one of the development Department. It functioned under the Co-operation...