Page 17 - Banking Finance March 2021

CO-OPERATIVE BANK NEWS

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Co-Operative Bank News

RBI gives 3-month extension Rs. 25,000 crore Maharashtra alleged that the entire investigation
was an eyewash.
to Rupee Cooperative Bank State Cooperative Bank

RBI has granted a further three-month scam RBI panel to weigh conso-
extension of its banking licence to the Hearing began on a petition filed by
Rupee Cooperative Bank (RCB), Pune, activist Anna Hazare against the lidation of urban co-op
till May 31, 2021. Till January 2021, the closure report filed by Mumbai Police banks
bank made total recovery of Rs. 258.11 in the alleged Rs. 25,000 crore The Reserve Bank of India said it has
crore, and aggregate operating profit Maharashtra State Cooperative Bank formed a panel led by former deputy
of Rs. 53.19 crore in the last four years, scam. Maharashtra Deputy Chief governor N.S. Vishwanathan to chart
Sudhir Pandit, chief administrator of Minister Ajit Pawar was one of the a roadmap for urban cooperative
the board of directors, said. accused named in the case. banks and study prospects for

As on January 31, 2021, total deposit The court heard the matter for some consolidation in the sector. The move
time on Saturday and adjourned it to comes over a year after the Punjab and
of the bank stood at Rs. 1,292.84 crore.
March 15, Hazare's lawyer said. Maharashtra Cooperative (PMC) Bank
Total advances were at Rs. 295.10 Besides Hazare, Surinder Arora, the crisis, which is yet to be resolved.
crore. Up to January 31, 2021, the
original informant in the case, has also
bank made an operating profit of Rs Among the terms of reference of the
filed a protest petition challenging the eight-member panel will be to suggest
19.93 crore and paid Rs. 366.54 crore police's decision to close the probe for
to 92,602 depositors under the want of evidence. ways for faster rehabilitation and
Hardship Scheme, officials said. resolution of any stress in urban
The Economic Offences Wing of police cooperative banks. The expert panel
The bank has taken steps such as had registered the case under IPC will also submit a vision document for
attachment of properties of defaulter sections 406 (criminal breach of trust) a "vibrant and resilient urban co-
borrowers and public auctions of the and 420 (cheating), the Prevention of operative banking sector" with regards
same, filing criminal suits against Corruption Act, and Securitisation and to the principles of cooperation as well
defaulter borrowers/guarantors, etc Reconstruction of Financial Assets and as depositors' interest and systemic
for recovery. The bank has also Enforcement of Security Interest Act. issues.
informed the names of its defaulter As per the FIR, the state exchequer The panel, RBI said, will also "review
borrowers/guarantors to other banks suffered losses of Rs. 25,000 crore the current regulatory and supervisory
for effective recovery, he said. Pandit between January 1, 2007 and approach and recommend measures
said the bank has been earning December 31, 2017 due to to strengthen the sector, taking into
operating profit since the last five irregularities in the Maharashtra State account the amendments to the
years. Cooperative Bank. Hazare's petition Banking Regulation Act, 1949 (As

BANKING FINANCE | MARCH | 2021 | 17