West Bengal is not known for a vibrant cooperative sector. According to the bush telegraph, most of cooperative bodies are in a mess and terribly weighed down by rampant graft. But the recent violation of the banking guidelines by scores of urban cooperative banks in making donations to charitable or benevolent organizations in the state has attracted ire of the RBI.
Revelations that these donations are selectively made to those organizations where political elements masquerading as independent directors or relatives are interested have caused the RBI’s ire to shoot up.
In addition, the central bank is annoyed at the banks exceeding the limit of one percent of their published profit for the previous year while making these donations.
A RBI source said it was abominable the way nepotism was being practiced by these banks. If they continued to indulge in it, they would have to face serious consequences, added the source.
