Do you Remember Malegam- an expert appointed by RBI on urban cooperative banks? The same man has been entrusted with the job of finding a solution to what has come to be known as Niravgate- the Rs 11350 crore PNB scam.
84 years old Chartered Accountant Malegam was the longest serving member on the Board of RBI. Though no longer on the apex bank’s board since 2016 he continues to be RBI’s favorite troubleshooter, says Economic Times.
Malegam’s recommendation of restructuring UCBs was, however, rejected by the cooperative sector. He suggested the new organization structure shall consist of a Board of Management in addition to the Board of Directors.
Board of Management , according to him would consist of persons with professional skills, which shall be entrusted with the responsibility for the control and direction of the affairs of the Bank assisted by a CEO who shall have the responsibility for the management of the Bank.