Union Agriculture Minister Sharad Pawar’s party NCP in Maharashtra must be heaving a sigh of relief as the RBI has issued banking licence to the Maharashtra State Cooperative Bank controlled by the party.
The RBI had dissolved the board of directors of the bank on the ground that the bank had indulged in serious financial irregularities. It was Nabard that had checked the bank’s financial transactions and hit upon the gaps in them.
Readers could recall that dissolution of MSCB Board had led to much heartburn among NCP supporters and a flash point was averted between Congress and NCP at the behest of Senior Pawar. Ajit Pawar, Deputy Chief Minister was peeved with the Chief Minister who cited NABARD recommendations as the basis behind his action.
MSCB also happened to be the largest cooperative bank of the country which was soon overtaken by the Saraswat Bank headquartered in Mumbai only.
Following the dissolution of the bank’s management by the RBI, there was some uncertainty surrounding the future of the NCP controlled bank.
The RBI move has come as a much needed relief especially to Ajit Pawar whose acolytes were at the helm in the bank.
Informed sources say, there are hundreds of banks in the country that are sans the RBI licence. These banks have to obtain the RBI licence or they cease to be banks.
