There have always been questions over who controls cooperative banks in India, states or the Centre. The ordinance empowers RBI to intervene in failing banks.
The multi-state co-operative bank has been under RBI restriction since 23 September, after the central bank found huge under-reporting of loans & non-performing assets.
Raising the issue in the Maharashtra Legislative Assembly, Shiv Sena leader Ravindra Waikar claimed 19 depositors of the bank have died ever since the scam came to light in September this year.
Deposit Insurance and Credit Guarantee Corporation (DICGC)'s response comes in the wake of the PMC Bank crisis and other bank frauds that have put people's savings at risk.
The RBI in September imposed restrictions on withdrawals from PMC accounts after it found alleged irregularities to the tune of Rs 4,355 crore by diverting money to infrastructure firm HDIL.
Solicitor General Tushar Mehta said the govt is aware of the seriousness of the PMC Bank scam and the Enforcement Directorate is taking appropriate action against the culprit.
Weak governance, corruption and poverty continue to define tribal life in India. The introduction of industrial and mining projects has benefited contractors, politicians and officials more than Adivasis.
Clean energy is “no longer the sideshow, it is the show”, BVR Subrahmanyam told the Odisha summit, warning India to lead the global shift or risk others’ tech dominance.
Dubai airshow crash & pilot death have rekindled concerns over pilot safety, and need for smarter automated systems that can step in when G-forces, temporary loss of consciousness hit the pilot.
None of Pakistan’s PMs has lasted 5 years. That the current PM has given Asim Munir 5 years shows that of all military dictatorships history has seen, Pakistan’s is most creative.
On the micro level the loan defaulters should be punished and on the macro level the EOW and the ED deparmentS should coordinate to strictly punish the bigger NPA defaulters of by enforcing the RTi Act rigoruosly.
The problem is not one of laws or ordinances. This regime has bypassed parliament time and again passing ordinances designed to increase state control in every sphere. As someone who has refused to pay to get a loan co-operative banks -and of course not getting them- I find it laughable that you think this will translate into more transparent system.
The rural cooperatives lend only to the rich and politically connected. Have you ever asked yourself why almost all small farmers have to resort to getting at usurious rates of interest from moneylenders rather than banks?
Just another scam awaiting exposure. Whither RTI ?
Ila sings praises of the economic management of the govt everyday ignoring the evidence of mismanagement all around us. Perhaps an economic advisory role is being sought by the author and writing these articles is the price for that endeavour.
Shifting of supervisory role to RBI for cooperative banks will yield better governance. However in no way it guarantees the depositor savings, which is limited to Rs. 5.00 lacs insurance cover. Despite all measures delinquency is increasing day by day. Defaulters are looting public money. The staff accountability against the bankers and more particularly recovery measures against the wilful defaulters have failed to arrest the rising trend of NPA. The mergers of the bank has further delayed the recovery efforts of the banks which were yielding good results in past few years.
On the micro level the loan defaulters should be punished and on the macro level the EOW and the ED deparmentS should coordinate to strictly punish the bigger NPA defaulters of by enforcing the RTi Act rigoruosly.
The problem is not one of laws or ordinances. This regime has bypassed parliament time and again passing ordinances designed to increase state control in every sphere. As someone who has refused to pay to get a loan co-operative banks -and of course not getting them- I find it laughable that you think this will translate into more transparent system.
The rural cooperatives lend only to the rich and politically connected. Have you ever asked yourself why almost all small farmers have to resort to getting at usurious rates of interest from moneylenders rather than banks?
Just another scam awaiting exposure. Whither RTI ?
Ila sings praises of the economic management of the govt everyday ignoring the evidence of mismanagement all around us. Perhaps an economic advisory role is being sought by the author and writing these articles is the price for that endeavour.
Shifting of supervisory role to RBI for cooperative banks will yield better governance. However in no way it guarantees the depositor savings, which is limited to Rs. 5.00 lacs insurance cover. Despite all measures delinquency is increasing day by day. Defaulters are looting public money. The staff accountability against the bankers and more particularly recovery measures against the wilful defaulters have failed to arrest the rising trend of NPA. The mergers of the bank has further delayed the recovery efforts of the banks which were yielding good results in past few years.