Page 15 - Banking Finance December 2022

Co-Operative Bank

News

RBI imposes penalties on case. The ED said the attached assets But now, "any cooperative society
include 20 immovable properties con- may, by a resolution passed by major-
nine cooperative banks for
sisting of land and building in Kerala, ity of not less than two-thirds of the
violating compliances two premium cars, Rs 3,40,000 and members present and voting at a gen-
foreign currency totaling Rs 2,08,124. eral meeting of such society, decide to
The Reserve Bank of India has imposed
The sleuths attached bank balances merge into an existing multi-state co-
monetary penalties on nine coopera-
also in Bijoy's 57 accounts worth Rs operative society: Provided that such
tive banks on account of various con-
35,86 990. resolution shall be subject to provisions
traventions or non compliances of laid
of the respective State Cooperative
down guidelines. The enforcement agency said he ille-
Societies Act for the time being in
gally sanctioned and disbursed loan to
These banks are The Berhampur Coop- force, under which such cooperative
the tune of Rs 26.60 crore in cash with-
erative Urban Bank, The Kendrapara society is registered," states the pro-
out any collateral due to systematic
Urban Co-operative Bank , The posed sub-section (10) to be added in
conspiracy hatched and perpetuated
Jamshedpur Urban Cooperative Bank, Section 17 of the 2002 law.
by the secretary and committee mem-
Krishna Mercantile Co-operative Bank,
bers of the bank since 2010. The Bill also seeks to establish a "co-
Renuka Nagarik Sahakari Bank
operative election authority" to bring
Maryadit, Jila Sahakari Kendriya Bank
"electoral reforms" in the cooperative
Maryadit, Osmanabad Janata Sahakari Centre proposes concur-
sector. For this, the government has
Bank, The Santrampur Urban Co-op- rent audit of multi-State proposed to substitute Section 45 of
erative Bank, and The Nawanagar Co-
Co-operative societies the 2002 Act. As per the proposed
operative Bank.
amendment, the authority will consist
The government introduced the Multi-
The monetary penalties slapped on of a chairperson, a vice-chairperson
State Cooperative Societies (Amend-
these banks range from Rs 25,000 to and a maximum of three members to
ment) Bill, 2022, which proposes merger
Rs 3.1 lakh, RBI said in nine standalone be appointed by the Centre.
of "any cooperative society" into an ex-
statements.
isting multi-state cooperative society.
RBI revises regulatory
The Centre has proposed this amend-
Scam in Karuvannur Ser- framework for UCBs
ment through Section 6 of the Bill, in-
vice Cooperative Bank troduced in Lok Sabha by Minister of The Reserve Bank of India has revised
the regulatory framework for urban
The Enforcement Directorate has at- State for Cooperation B L Verma. As
co-operative banks (UCBs), prescribing
tached assets worth Rs 30.70 crore of per the present law, enacted 20 years
minimum net worth of Rs. 2 crore for
Bijoy A K, the commission agent of ago, only multi-state cooperative soci-
Tier-1 banks and Rs. 5 crore for all
Karuvannur Service Co-operative Bank eties can amalgamate themselves and
other banks.
Ltd, under the Prevention of Money form a new multi-state cooperative
Laundering Act in fraud and cheating society. While Tier-1 UCBs shall continue to
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