RBI overseeing the bifurcation of Goa State Cooperative Bank from its Daman and Diu operations, has asked the apex cooperative bank in Goa to maintain separate balance sheets on a trial basis, reports Times if India.
The Goa State Cooperative Bank enjoys the status of the apex cooperative bank in Goa and a multi-state cooperative bank. The Reserve Bank of India had given the bank a deadline to complete the bifurcation of the banking operations, but the bank failed to meet consecutive deadlines.
The earlier BJP government has failed to fulfil two crucial conditions required for the bifurcation, which would also require the bank’s board to be reconstituted.
The government, which holds a stake in the bank, has to issue a no-objection certificate stating that it is not averse to the proposed bifurcation of the bank and provide capital infusion.
The RBI has issued directives to maintain separate accounts, including provisioning norms, on a trial basis.
