Punjab govt has sat up and taken note of increasing cases of wrong-doings by the cooperative banks. It has proposed to amend cooperative Act to allow entry of only professional MDs in the cooperative bank operations.
The Punjab govt contemplates professionalizing the cooperative banking sector in the state. It would replace the ordinance with a bill for making amendments in section 26[2] [a] of the Punjab cooperative societies Act in the coming session of the state assembly towards this end.
The govt has underlined the need of appointing professionals from the banking sector as MDs of the central cooperative banks.
It is worth mentioning that the central cooperative banks are supposed to strictly follow the guidelines laid down by RBI failing which they would be denied refinance from Nabard.