Page 15 - Banking Finance February 2025

and its office-bearers, accusing them
of embezzling funds worth approxi-
mately Rs. 85 crore.

The alleged fraud involved nearly 400
fraudulent loan accounts and the dis-
bursal of funds based on fake or forged
warehouse and LIC receipts.
Ò»©­ RBI Approves NCBL-Cos-

mos Co-operative Bank

Merger
The Reserve Bank of India (RBI) has
sanctioned the amalgamation of Na-
Shah: 2 Lakh Primary Agricultural Credit Societies to tional Co-operative Bank Ltd. (NCBL),
Bangalore, with Cosmos Co-operative
Be Established in 5 Years Bank Limited, Maharashtra.
Union Home Minister and Minister of Cooperation Amit Shah inaugurated The merger has been approved under
10,000 newly established Multipurpose Primary Agricultural Credit Societ- Sub-Section (4) of Section 44A, read
ies (MPACS), along with Dairy and Fisheries Cooperative Societies. with Section 56 of the Banking Regu-

Speaking at the event, Shah stated, "We have set a target of creating 2 lation Act, 1949. The scheme will come
lakh Primary Agricultural Credit Societies (PACS) in five years It will not into effect from January 6, 2025, and
take five years; we will establish 2 lakh PACS before that. We have already NCBL's branches will operate as Cos-
established 10,000 PACS in the last three months." mos branches from the same date,

Shah detailed that NABARD will set up 22,750 PACS in the first phase and according to an RBI release.
47,250 in the second phase. Similarly, the National Dairy Development Board Earlier, on December 31, the RBI im-
(NDDB) will create 56,500 new societies and strengthen 46,500 existing posed a monetary penalty of Rs. 8.30
ones, while the National Fisheries Development Board (NFDB) will establish lakh on Cosmos Co-operative Bank for
6,000 fisheries cooperative societies and empower 5,500 existing ones. non-compliance with certain regula-
tory directions.
Additionally, state cooperative departments will contribute by forming
25,000 PACS. Shah highlighted that 11,695 new primary cooperative soci- The penalty related to the bank charg-
eties have already been registered under the new model bylaws, a signifi- ing foreclosure fees on floating rate
cant milestone. He emphasized that achieving the 2 lakh PACS target will term loans sanctioned to certain indi-
facilitate seamless integration of farmers' produce into global markets vidual borrowers.
through robust forward and backward linkages.
Join
Enforcement Directorate probe into alleged fund embezzlement
at a state cooperative bank.
Raids RJD MLA, Others in Online Certificate
The raids were carried out in Bihar,
Bihar Cooperative Bank West Bengal, Uttar Pradesh, and Delhi. Course on

Case Mehta, who is the promoter of the
Bihar-based Vaishali Shahri Vikas Coop- Motor Insurance
The Enforcement Directorate (ED)
erative Bank, was under scrutiny along
conducted searches at 18 locations,
including premises linked to RJD MLA with other linked entities. For details please visit
and former Bihar minister Alok Kumar The money laundering investigation www.smartonlinecourse.co.in
Mehta, as part of a money laundering stems from FIRs filed against the bank

14 | 2025 | FEBRUARY | BANKING FINANCE