Last Friday, no one turned up to deliver milk at Avillion Greenfields, a cooperative housing society in Mumbai. Raju Agarwal, civil contractor who lives in Avillion Greenfields, has fixed deposits of nearly Rs 50 lakh in the same urban cooperative Bank. Even the two Avillion Greenfields housing societies at Jogeshwari East together have deposits of nearly Rs 3.5-crore in the crisis-hit lender. While only 31% of them are in tier-2 category, they account for more than 85% of deposits and advances.Many small cooperative banks and cooperative societies also keep their deposits in large urban cooperative banks. There has to be an immediate relief for depositors and rehabilitation for the bank.”Urban cooperative banks are caught in a time warp, he says.

Source: Economic Times September 28, 2019 17:30 UTC