Page 20 - Banking Finance April 2020

CO-OPERATIVE BANK NEWS

CO-OPERATIVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

Bill passed in Assembly to and Maharashtra Cooperative Bank several authorities regarding expedi-
Limited was placed under All-Inclusive tious security sale and loan recovery.
put on hold cooperative Directions under sub-section (1) of Sec-

bank elections in tion 35 A read with Section 56 of the Rupee Co-operative Bank
Maharashtra Banking Regulation Act, 1949 with ef- granted another extension
fect from close of business for six
With the aim of amending the months due to under-reporting of bad from RBI for banking li-
Maharashtra Co-operative Societies loans.
Act 1960 has been passed in the As- cense
sembly, which has given the govern- "The RBI, in consultation with various The RBI has granted another exten-
ment an upper hand in terms of deter- stakeholders and authorities, is trying sion to Rupee Co-operative Bank, Pune
mining the elections to the 21 district to work out a scheme for revival of the for its banking license till May 31,
cooperative banks. According to sched- bank. In order to take this forward, it 2020.
ule, the elections are supposed to be is considered necessary to extend the
completed between April and June aforesaid Directions for a further pe- As on January 31, a deposit of Rs
2020. riod of three months," the RBI said in 1,289.18 crore has been reported by
a statement. bank. It paid Rs 350.58 crore to
Cooperative Minister Balasaheb Patil 88,693 to those depositors who are
said, "The government has taken a Under the restrictions, withdrawal needy under Hardship Scheme of the
decision to put on hold cooperative limitation will be applicable on the the RBI since February 2013. It must be
bank elections because of the ongoing bank's depositors, while the bank itself pointed out that since February 2013
loan waiver process for farmers. Under has been barred from renewing, or the bank was placed under RBI direc-
the Act, the government has the right granting any loans, or making invest- tives.
to take such a decision if there are ments without prior approval of the
natural calamities." central bank. Sudhir Pandit, chairman of the board
of administrators said, "The joint pro-
RBI Extends Regulatory As have been observed, the directions posal for merger of Rupee Bank with
curbs on PMC Bank until were modified from time to time. Re- MSC Bank, mutually agreed by both
serve Bank has been keeping a close the banks envisaging 'no loss' to the
June 22 watch on the situation and conducting depositors has already been submitted

The RBI has made an extension to the meetings with the Administrator and to RBI. The proposal is presently under
regulatory restrictions on Punjab and the Advisory Committee of the bank. scrutiny and evaluation of the RBI, he
Maharashtra Cooperative (PMC) Bank said, adding that both the banks are
for until June 22. In September, Punjab The RBI has also been discussing with following up the issue with RBI." The

18 | 2020 | APRIL | BANKING FINANCE