Page 18 - Banking Finance November 2019

CO-OPERATIVE BANK NEWS

Debit card scam in Delhi co-op bank gives loans on forged documents,
Balangir Central Coop- house panel hears case
erative Bank in Odisha, Delhi Nagrik Sahkari Bank (DNSB), a cooperative bank registered with the Reg-
istrar of Cooperative Societies (RCS), provided loans to a
panic spread among cus- large number of people on the basis of fake income tax
tomers returns and forged property papers and government iden-
tity cards. Chaired by Greater Kailash MLA Saurabh
A panic has been spread among the
Bharadwaj, the House Petitions Committee also found that
customers
of Balangir the bank, which has estimated deposits of about Rs600 crore, had non-perform-
Central Co- ing assets (NPAs) of about 38% (more than Rs 225 crore).
operative The panel observed that at least four inquiry committees, including an internal
Bank due to probe and three independent auditors, one of whom was appointed by the RBI,
a debit card found massive corruption in extending loans to various individuals and indicted
scam. According to the reports, at chief executive officer Jitender Gupta for several irregularities during his previ-
least 12 account holders of the bank ous tenure as senior manager of audit and purchase departments.
were allegedly duped to the tune of In accordance with the committee’s observation, taking cognisance of the
Rs 10 lakh through their debit cards. probe panel reports, the RCS issued prosecution sanction against Gupta on Sep-
An account holder Bedashree tember 24, which was stayed by the financial commissioner (FC) in ex-parte order.
Purohit said, “I had deposited Rs
80,000 in the bank. A few days back Committee chairperson Saurabh Bharadwaj said, “The FC also stayed the RCS or-
when I went to withdraw the inter- der to seize the bank’s financial powers. After taking permission from theReserve
est amount, I was told by the bank Bank of India to let the Delhi government take over the bank, the RCS also issued
staff that somebody had already a notice to its management committee, but it was stayed by the FC.”
withdrawn money from my ac- Jammu Central Cooperative Bank operations reviewed
count.”
by advisors
Another customer Goura Chandra
Puruseth said he had Rs 1, 72,000 in The functioning of Jammu Central Cooperative Bank have been reviewed re-
his account. "But when I updated my cently by Governor K.K Sharma and Khurshid Ahmad Ganai.
passbook on October 4, I was The meeting was also attended by Financial Commissioner
Finance Dr Arun Mehta, Secretary Cooperatives, Abdul
shocked to find only Rs 36 in my ac-
count," he said. Majid Bhat, and Managing Director JCCB.
The advisors while reviewing functioning of the Bank di-
Sources further stated that the bank
rected creating new avenues for improving the financial and
has started the debit card opera-
tions in the bank around a year back. fiscal working of the Bank so that the aspiring entrepreneurs
Debit cards have been issued to the and businessmen get benefitted through its services. They also directed con-
several customers against their ac- ducting regular meetings in order to assess the quantum of loans being given
and also the status of NPAs.
counts are yet to receive them.
The bank still has several new unused The Advisors also suggested taking measures to redress the human resource
debit cards along with their PINs. issues of the employees working in the Bank by holding regular board meetings
so that various policy decisions can be worked out for better functioning of the
CEO in-charge of the bank
Bank as well as settlement of other related issues.
Bankanidhi Rayaguru said initial in-
vestigation reveals that the money The Bank should also be vibrant to the new practices being adopted in the sector
was withdrawn by a contractual besides being consumer friendly as it is an important medium for strengthening the
outsourced employee of the bank cooperative movement in J&K. The advisors asked the Bank that it should come up
through the debit cards which are with a comprehensive proposal with respect to the future course of action for work-
yet to be sent to the customers. ing out the NPAs and extending banking services to the prospective customers.

18 | 2019 | NOVEMBER | BANKING FINANCE