Nationalist Congress Celebration (NCP) chief Sharad Pawar has criticised the Reserve Financial institution of India (RBI) over its alleged “untouchable” method in the direction of cooperative banks and requested Prime Minister Narendra Modi to intervene within the matter.
“The outlook of RBI is that the share of the cooperative banking sector within the total banking sector is merely 3%… It has been insisting on the conversion of cooperative banks into non-public banks. It’s pertinent to say right here that RBI, since 1993, has been making an attempt to transform city cooperative banks (UCBs) into non-public banks by establishing varied committees and issuing circulars sometimes to implement suggestions of those committees, however couldn’t succeed,” Pawar mentioned in a letter written to PM Modi on August 15.
“Within the wake of the Punjab and Maharashtra Cooperative (PMC) Financial institution’s fallout as a consequence of a rip-off much like that of Madhavpura Cooperative Financial institution, to finish existence of the cooperative banking sector, the Banking Regulation (Modification) Invoice, 2020, was launched in Lok Sabha on March 3 by making a number of amendments within the provisions of the Banking Regulation Act, 1949, as urged by RBI. When the Parliament was suspended as a consequence of Covid-19 and no dialogue it may very well be held, the invoice was transformed into an ordinance on June 24,” the letter states.
Pawar mentioned that he agreed that there needs to be monetary self-discipline within the banks, however it will be definitely incorrect to say that such a conversion of the cooperative sector into a personal sector would utterly or partially forestall misappropriation of funds, monetary irregularities and frauds.
To show his level, he shared information revealed by RBI concerning monetary fraud within the banking sector for the final monetary yr. “Within the monetary yr 2019-20, an alleged fraud of ₹4,355 crore was recognized within the PMC Financial institution rip-off, whereas through the first half of the yr, fraud of roughly ₹95,700 crore was reported in nationalised banks. Subsequently, it isn’t appropriate to say that misappropriation of funds or monetary irregularities are noticed in cooperative banks solely. Additional, it appears absurd to say that privatisation of cooperative banks would curb or scale back banking fraud,” the letter talked about.
“I due to this fact earnestly request you [Modi] to kindly look into the matter personally and provides justice to the cooperative banking sector, which has a legacy of greater than 100 years and is striving arduous not solely to exist however to develop regardless of all odds,” Pawar wrote.