Page 18 - Banking Finance April 2021

CO-OPERATIVE BANK NEWS

The RBI said the decision of believe that SVC is amongst the few Rupee Cooperative Bank
amalgamation will be approved by cooperative banks to invest in
two-third majority of the total number technology and become a one-stop- hopes for early merger or
of board members of both shop for our customers' financial revival
amalgamating and amalgamated requirements. Today, SVC is well The board of administrators of the
UCBs, and not just of those present digitised to offer relevant banking Rupee Cooperative Bank reported a
and voting. solutions like the entire digital suite, total recovery and profit of Rs. 258.11
The draft scheme of amalgamation including UPI, Debit Cards, Internet crore and Rs. 53.19 crore in the past
will be approved by the shareholders Banking, Mobile Banking, NEFT/RTGS four years. The bank is under the
of each UCB by a resolution passed by and IMPS. Kudos to the entire team at banking restrictions since 2013. It is yet
a majority representing two-thirds of SVC for achieving these heights." to get the green signal from RBI for its
the shareholders, both in number and merger with the Maharashtra State
value, present in person at a meeting RBI imposes Rs. 1 lakh fine Cooperative Bank (MSC). The apex
called for the purpose. bank has, however, granted extension
on United India Co- for the Rupee Bank's licence till May
SVC Co-operative Bank
operative Bank 31, 2021.
clinches 'Best Co-operative RBI has recently imposed a monetary As of January 31, 2021, the total

Bank 2020' award penalty of Rs. 1 lakh on the United deposit of the bank is Rs. 1,292.84
SVC Co-operative Bank Ltd. has been India Co-operative Bank for violation of crore and the advances are Rs. 295.01
conferred with the 'Best Co-operative rules. RBI, in a release, said that the crore. According to a press statement,
Bank 2020' award at the 19th Global penalty is on account of deficiencies in "During the year up to January-2021,
Edition and 4th India Edition of World regulatory compliance. the bank has made operating profit of
Leadership Congress & Awards. The This penalty has been imposed in Rs. 19.93 crore. Till January 2021, the
award was received by Mr. Dilip J. exercise of powers vested in RBI under bank had paid Rs. 366.54 crore to
Pendse (CFO), Mr. Vasant Srivastava 92,602 needy depositors under the
the provisions of Section 47 A (1) (c)
(Head-Retail Banking) and Mr. Hardship Scheme."
read with Section 46 (4) (i) and Section
Ravinder Singh (Head-Corporate 56 of the Banking Regulation Act, Steps like attachment of properties of
Banking). defaulter borrowers, public auction of
1949, taking into account the failure of
SVC Co-operative Bank has previously the bank to adhere to the aforesaid the same and filing criminal suits have
bagged several prestigious awards. In directions issued by RBI. been initiated by the bank. Sudhir
2019-20, it had won five other Pandit, Chairman of the board of
Explaining the action, RBI stated that
prestigious awards including 'Best Co- administrators, said, "The bank has
it advised the bank to submit various
operative Bank & Future Ready Bank' also informed the names of its
awards at World BFSI Congress & returns. However, the bank failed to defaulter borrowers/guarantors to
Awards, 'Best Bank - Co-operative submit these returns to the RBI within other banks for effective recovery."
Segment' award at the ABP News BFSI the stipulated time.Subsequently, a A joint merger proposal was submitted
Excellence Awards, 'Best E-Payments show cause notice was issued to the to the RBI in January, 2020. The press
Initiative' and 'Best Debit Card bank advising it to show cause as to statement read, "However, the RBI
Initiative' awards (Large UCB why penalty should not be imposed for advised MSC Bank/RCS to re-submit
Category) at Frontiers of Co-operative non-compliance with the directions. the proposal in adherence with the RBI
Banking Awards (FCBA) 2019.
RBI also added, "After considering the Circular on Transfer of Assets and
Commenting on the occasion, Ajit bank's reply, RBI came to the Liabilities and specifying other
Venugopalan, MD, SVC Bank, stated, conclusion that the aforesaid charge of compliances and conditions.
"This award is a prestigious recognition non-compliance with RBI directions Accordingly, revised proposal has been
of our efforts to offer the best banking was substantiated and warranted submitted through the Co-operative
experience to our customers. We imposition of monetary penalty." Department on 24.11.2020." T

18 | 2021 | APRIL | BANKING FINANCE