According to Yugabda, RBI has let be known that it finds the Odisha Government not taking enough interest in the development of Urban cooperative Banks in the state.
The RBI has noticed serious faults in the management of these banks including withdrawal of the security deposits from the UCBs by the state government. All the banks are financially beleaguered, adds the apex bank.
According to the RBI, bank officers made compromise settlement without recommendation of the cooperative registrar, non – deposition of CTR/STR return, High Gross NPA and Net NPA, and did not take membership of Credit Information Company, distribution of share from the profit among the members.
The Nine existing Urban Cooperative banks are in Cuttack, Balasroe, Kendrapara, Berhampur, Parlakhemundi, Rourkela, Jayapur, Utkal cooperative bank and Bhuvaneshwar.