The dissolution of the board of directors of NCP controlled Sangli District Central Cooperative Bank in Maharashtra has fuelled speculation in the country’s cooperative circles that the banks controlled by the politicians would soon come under RBI’s scanner.
The RBI move has shocked Sharad Pawar the doyen of the country’s cooperative movement.
Readers may recall that RBI has already made a move to bring cooperative banks and their societies directly under it. A constitutional amendment to this effect has already been set in motion in the Parliament. Till now cooperative banks are controlled by state governments and respective cooperative registrars of the states.
Mr Pawar and his acolytes are crying foul over the move. They suspect that the congress party may have probably played some role in it. The incident has already triggered a slanging match between the allies.
According to informed sources, the corrupt transactions and gross violations of the Banking Regulation Act by Sangli coop bank have necessitated the RBI move.
Sources add Nabard’s inspectors found the Sangli Bank indulging in serious irregularities and infractions of laws. They concluded that the bank was not functioning as a responsible financial institution. They sent a report to the RBI recommending an immediate dissolution of the management of the bank.
