cosma, s ; the impact of basel ii on co - operative banking bis central bankers ’ speeches available. however, in the case of small - size banks characterised by steady risk profiles, such information disclosure could be yearly. adoption of technology – financial inclusion i mentioned earlier that the co - operative institutions by virtue of their business model are better equipped to further financial inclusion initiatives. the organizational structure ( member driven ), the largely local clientele, easy access and the reputation as a friendly neighbourhood bank are the strengths of ucbs which enable them in widening and deepening financial inclusion. a number of measures have been taken to facilitate financial inclusion by ucbs : the measures include ( i ) introduction of no - frills account with nil or low minimum balance, ( ii ) relaxation of know your customer ( kyc ) requirements for small accounts, ( iii ) constitution of an expert committee for studying the advisability of granting licences to new urban co - operative banks, ( iv ) exempting ucbs maintaining minimum crar of 12 % on continuous basis from the mandatory share linking norms, ( v ) revising the permitted credit limits for individual housing loans, ( vi ) extension of area of operations by ucbs, ( vii ) liberalising norms for opening of new branches by ucbs, ( viii ) permitting well managed banks to set up off - site atms, ( ix ) permitting use of business correspondents ( bcs ) and business facilitators ( bfs ) by ucbs, ( x ) permitting lending to self help groups ( shgs ) and joint lending groups ( jlgs ) etc. technology forms a critical component of financial inclusion initiatives as use of it reduces the cost of financial transactions, improves the allocation of financial resources and increases the competitiveness and efficiency of the financial institutions. in india we have adopted a bank led model for financial inclusion which seeks to leverage on technology. the commercial banks and regional rural banks were advised to adopt core banking solutions for all their branches by september 2011 for the purpose. the multi - channel approach adopted for financial inclusion in the country envisages financial inclusion through multiple channels like handheld devices, mobiles, cards, micro - atms, branches, kiosks, etc. the front end devices used for the purpose have to be seamlessly integrated with the core banking solutions ( cbs ) of the banks. ucbs were, therefore, advised to scale up their financial inclusion efforts by utilizing appropriate technology. ucbs have

built on the principles of self - help and mutual co - operation inasmuch as they enable inclusive growth by bis central bankers ’ speeches involving even less privileged, engage in basic banking and that is where they should stay. they clearly have a greater role to play in the post crisis world. in fact, the lessons from the global financial crisis veer us towards keeping the basic banking separate from the investment banking or casino banking as it is more popularly being called of late. while casino banking has its own place, the criticality of basic banking and the importance of keeping it separate from more risky investment banking has been emphatically argued in the aftermath of the crisis. the regulatory framework as suggested by volker rule in the us and the vickers ’ report in the uk recommend this separation. in india, however, the regulations and the organisational structure of banks have ensured that the risky activities of investment banking segment are contained and do not impact the basic banking segment adversely. contribution of co - operative institutions the contribution of co - operative banks and other credit co - operatives has generally been evaluated in economic terms. these institutions have often been lauded and, at times, criticized in the context of their usefulness ( or lack of it ) in the economic upliftment of people of smaller means. but the point which has often been missed out is their very profound contribution to the democratization of social behaviour in general and the democratization of economic behaviour in particular. in a society, where joint family system is disintegrating fast, co - operatives may also be looked upon as an alternative social support mechanism. democracy vs efficiency many of the practitioners and thinkers of co - operative structure are facing the dilemma of finding a delicate balance between democracy and efficiency as the two are often considered mutually exclusive of each other. but in order to restore the credibility of co - operatives in the eyes of the public, it is essential to get our priorities right. a co - operative institution essentially is “... an association of persons who have voluntarily joined together to achieve a common end through the formation of a democratically controlled organization, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in which the members actively participate. ” any attempt to infuse efficiency by sacrificing democracy, appears to me, a non co - operative solution to a co - operative problem. the success of co - operative institutions depends on active member involvement and economic participation. it has