The newly elected govt in MP has asked chairmen of cooperative banks in the state to resign latest by 3rd January. This has caused uncertainty in the cooperative banking sector. The heads of the coop banks fear they might lose their jobs.
As to the polls to the banks, there are two opinions doing the rounds. One, the cooperative election should be completed in January-February, two, taking resignations from the chairmen and the management boards administrators should be appointed to run the banks for some time.
Sources say, there are political considerations influencing the govt. decision. The new govt. wants to reward some of its leaders and workers who put in their best to make the party win the recent assembly elections with plum positions, claim sources.
The polls to the district cooperative banks have not been held since October 2013. The term of 27 out of total 38 district cooperative banks had already ended in October in 2012. As per the new cooperative law, formation of the cooperative election authority had been postponed due to the recent assembly poll.