Das, who is offering assistance to the depositors, has stated that safeguarding their funds is not only the bank’s top priority, but also a duty even more revered than going to a place of worship.The RBI chief’s remarks are intended to reassure individuals who, in the aftermath of massive frauds that have hit the Indian banking system in recent years, are concerned about the safety of their accounts, particularly those from the middle and lower classes.
Source: The Quint
The Punjab and Maharashtra Cooperative Bank’s demise in 2019 has brought intense scrutiny on the whole urban cooperative banking industry. The gross non-performing assets ratio of UCBs has increased to 8.7%, but the RBI Governor has remarked that this is still below a comfortable level. The fact that some UCB directors lack knowledge of credit risk management and other facets of banking is concerning. To the detriment of customers who have invested their hard-earned money in these banks, their political clout aids them in dictating policy.
One example is the chaos in the Kerala cooperative industry. The Rs 150 crore Karuvannur bank scam is being looked into by the Enforcement Directorate; it involves suspected fraud at the CPM-controlled cooperative bank in Thrissur. The investigation has made things difficult for the in power Left Democratic Front.
Source: NEWS9 Live
The CPM-run Kandala Service Cooperative Bank in rural Thiruvananthapuram has also lost the trust of its depositors amid a political brawl. Between 2005 and 2021, the bank’s assets declined by Rs 101 crore, purportedly as a result of poor management and financial irregularities. Cooperative banks are a cornerstone of the banking system, thus a clean-up in Kerala and other regions of the nation is urgently needed.
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