Agriculture minister, Sharad Pawar has insisted on a more supportive attitude of banking regulator, Reserve Bank of India towards the urban cooperative banks (UCBs). He however strongly supported the fact that the defaulting banks should be duly punished too.

The major support needed by the UCBs is in implementing core banking solutions (CBS) so that there is efficiency of operations and transparency of transactions.

Pawar, while addressing the national launch of CBS in UCBs in Ahmedabad said that despite the fact that cooperative banks held only 4% of the total banking industry, but they served a major cause of serving the poor and middle class who are still not reached to by private banks.

He said that NABARD could aid UCBs with funds needed for CBS implementation. "We will discuss this with NABARD and ensure that small banks do not lack support... small banks should consolidate themselves by forming strategic groups," he said.