The cooperative credit societies of Maharashtra under the banner of State Cooperative Credit Societies Federation will go on hunger strike from today at the Buldhana district headquarters against cooperative societies, money stuck in Malkapur Urban Cooperative Bank, which has been under the RBI directions for more than one year.
The Maharashtra State Cooperative Credit Societies Federation Chairman Kaka Koyate is keeping a close eye on the situation and will also join in this strike, which will take place outside the office of the District Collectorate.
Talking to the Indian Cooperative, Koyate said, “We are going to hold a hunger strike at Buldana District against the Malkapur UCB, in which money of many credit societies of the state has been stuck due to RBI directions”.
“Around 300 crore of over 225 credit co-ops money have been stuck. We are not only asking for giving the money back but also strict action should be taken against members of the management who are responsible for taking the Malkapur UCB into this position”, he added on the phone.
He said that the RBI took action against the bank in the wake of misuse of powers, irregularities and non-recovery of loans. As a result, crores of rupees of lakhs of depositors and credit institutions have been stuck.
It bears recall that, the former BJP MLA Chainsukh Sancheti heads the bank and RBI had imposed several restrictions, including a Rs 10,000 cap on withdrawals due to its poor financial position on 24th November 2021.
In February, 2023, the RBI extended the direction on the bank till 24th May 2023.