Page 4 - Cooperative Banks

RBI supersedes Abhyudaya Co-operative bank board, appoints administrator

No business restrictions, to carry out normal banking activities

ED arrests Ex-KPCC general secy in cooperative bank fraud case in Kerala

Kerala Pradesh Congress Committee (KPCC) former general secretary, K K Abraham, has been arrested by the Enforcement Directorate (ED) in connection with an alleged loan scam that occurred during his tenure as president of a service cooperative bank in Wayanad district. Abraham was taken into custody on Tuesday night in connection with the Pulpally Service Cooperative bank scam, according to official sources. He was subsequently presented before a court on Wednesday, they said without elaborating. ED initiated a probe after receiving multiple allegations of financial irregularities within the bank during Abraham's time as president of the institution's governing body. The victims had approached the ED seeking probe into the scam. One of the victims of the scam had died by suicide a few months ago. Prior to the ED action, Abraham had been arrested by the Vigilance wing of the Kerala police following a cheating complaint filed by an elderly couple.

WCopEF formed to give voice to over 3 mn cooperatives across globe

Leading cooperative sector experts have come together to form the World Cooperative Economic Forum (WCopEF) to give voice to over three million cooperatives spread across the globe, employing 10 per cent of the total workforce worldwide. The WCopEF will endeavour to promote cooperative thinking and cooperative movement, in addition to raising issues and concerns of the sector with the governments and other stakeholders around the globe. "WCopEF journey is starting at the juncture of ideation of an equitable economy, tempered by pragmatism. We are transitioning to a new engagement with the international cooperative economic order," Dileep Bhai Shanghai, one of the founder members of the Forum, said in a statement. Shanghai, Chairman of the fertilizer major IFFCO and President of National Cooperative Union of India (NCUI), had also earlier served as a member of parliament and a Minister in the Government of Gujarat. The other founder members of the WCEF are Binod Anand, member MSP ..

Cooperative bank scam: Congress accuses Left govt of deceiving investors

Attacking the Left government over the syphoning of funds from Karuvannur Cooperative Bank, the Opposition Congress on Wednesday accused Chief Minister Pinarayi Vijayan of not finding a solution to the problems of people who have invested their life's savings in the scam-hit financial institution. The party alleged that the Left government was protecting the looters and those who shared the plundered money from Karuvannur bank. The assurance given by the government that no investor in the scam-hit cooperative bank would lose their money was yet another bid to deceive them, Leader of Opposition in the State Assembly V D Satheesan said in a statement here. A day after Cooperation Minister V N Vasavan said in Kochi that the depositors of Karuvannur bank would get their money back at the earliest, Satheesan pointed out that the government had assured those who had invested up to one lakh rupees that it would return their deposits, but was silent about those people who had invested lakh

Cosmos Coop Bank merges Sahebrao Deshmukh Co-op Bank with itself

Cosmos would have 170 branches in seven states across India

RBI cautions UCB directors against camouflage of financial position

The RBI today held a Conference of Directors on the Boards of Tier 3 and 4 Urban Cooperative Banks (UCBs) in Mumbai Zone

RBI Guv asks urban co-op banks for rigorous follow-up to recover bad loans

Reserve Bank Governor Shaktikanta Das on Wednesday asked urban cooperative banks to go for rigorous follow-up of large NPA borrowers for effective recovery, and not to camouflage their actual financial position by innovative accounting practices. In a statement, the RBI said the Governor held a conference of directors on the boards of select large urban cooperative banks (UCBs) in Mumbai Zone. The Reserve Bank has started engaging with the directors of its regulated entities functioning in different segments of the financial system. Two separate conferences were held with directors on boards of public sector banks and private sector banks in May 2023. The governor reinforced the need for board's involvement in upholding rigorous credit risk management including robust underwriting standards, effective post sanction monitoring, timely recognition and mitigation of incipient stress, rigorous follow-up of large NPA borrowers for effective recovery, and maintaining adequate ...

ED raid at my house pre-planned: Kerala's Moideen on bank fraud case

: Senior CPI (M) leader A C Moideen MLA on Wednesday termed the raid carried out by the Enforcement Directorate (ED) at his residence here as "pre-planned," and said he would co-operate with any investigation. The central agency conducted a 22-hour-long search at his house in connection with the money laundering probe linked to an alleged Rs 100 crore fraud in the party-controlled Karuvannur cooperative bank here. The search began on Tuesday morning, and continued till early today. The ED sleuths left at 5.15 am. Addressing the media, the former minister of Cooperation and Industries said the investigators verified his bank account details and that of his family members besides checking other property documents kept at the residence. "The ED officials searched the entire premises. My bank account details, as well as those of my wife and daughter, were examined. The property documents kept at the house were also examined," he said. He said he was told by the investigators that one

Co-op banks to soon be able to do compromise settlements, write-off on NPAs

Reserve Bank Governor Shaktikanta Das on Thursday said cooperative lenders will soon be able to do technical write-offs and execute compromise settlements with defaulting borrowers. RBI has decided to widen the scope of the framework for resolution of stressed assets, under which all the regulated entities including cooperative lenders will now be able to execute "compromise settlements and technical write-offs" to resolve non-performing assets, Das said. Till now, this avenue for dud asset resolutions was available only with scheduled commercial banks and select non-bank finance companies, Das said, adding that comprehensive guidelines on the same will be released soon. It can be noted that the cooperative lending sector frequently makes headlines for lack of governance practices and conflicts of interest. Das also said that it is proposed to rationalise the extant prudential norms on restructuring of borrower accounts affected by natural calamities. The Governor also acknowledge

Demand for 5 days of work at banks hits speed bumps, likely to take time

Public sector banks will have to see that their business is not affected in case private banks decide to work on Saturdays

RBI imposes Rs 44 lakh penalty on 4 co-operative banks for violation

The Reserve Bank has imposed penalties totalling Rs 44 lakh on four cooperative banks, including a Rs 16 lakh penalty on Chennai-based The Tamil Nadu State Apex Co-operative Bank, for contravention of various norms. A penalty of Rs 13 lakh has been imposed on Bombay Mercantile Co-operative Bank as it failed to transfer eligible amount to Depositor Education and Awareness Fund (DEAF) within the prescribed period and transferred the same with delay, RBI said in a release on Monday. In a separate release, the central bank said a penalty of Rs 13 lakh has been imposed on Janata Sahakari Bank, Pune for non-compliance with directions on 'Interest Rate on Deposits'. Penalty has been imposed on The Tamil Nadu State Apex Co-operative Bank as it failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. It also failed to report a fraud to NABARD within the prescribed timeline and reported the same with delay. A monetary penalty of Rs 2 lak

Keep your money safe: Stick to systemically important banks for safety

Be wary of co-operative banks which have historically been most vulnerable

Tribal economy set to get a fillip; Madhya Pradesh govt notifies PESA Act

According to the state forest minister Vijay Shah, in this year's Van Mela, forest products worth Rs 3 crore were sold

Urban Co-op Bank profiles improve on bad loan dip, better profitability

However, growth in deposits and advances took a knock as liabilities shrank on the back of high base in 2020-21, shows RBI Report on Trend and Progress of Banking in India

RBI imposes penalty on 13 cooperative banks for breaching regulatory norms

The Reserve Bank of India on Monday announced penalties on 13 cooperative banks for contravention of various regulatory norms. The penalties range between Rs 50,000 and Rs 4 lakh. The maximum penalty of Rs 4 lakh has been imposed on Shri Kanyaka Nagari Sahakari Bank, Chandrapur, and Rs 2.50 lakh fine on The Vaidyanath Urban Co-operative Bank, Beed. A penalty of Rs 2 lakh each has been slapped on Wai Urban Co-operative Bank, Satara and Indore Premier Co-operative Bank, Indore. For contravention of various norms, a penalty of Rs 1.50 lakh each has been imposed on Patan Nagarik Sahakari Bank, Patan and The Tura Urban Cooperative Bank, Meghalaya. The other banks on which have penalties been imposed are: Nagrik Sahakari Bank Maryadit, Jagdalpur; Jijau Commercial Co-operative Bank, Amravati; Eastern & North-East Frontier Railway Co-op Bank, Kolkata; Jila Sahakari Kendriya Bank Maryadit, Chhatarpur; Nagrik Sahakari Bank Maryadit, Raigarh; Jila Sahakari Kendriya Bank Maryadit, Bilaspur; .

Scam in cooperative bank: ED has attached assets worth Rs 30 crore

The Enforcement Directorate (ED) has attached assets worth Rs 30.70 crore of Bijoy A K, the commission agent of Karuvannur Service Co-operative Bank Ltd, under the Prevention of Money Laundering Act in fraud and cheating case. The ED said the attached assets include 20 immovable properties consisting of land and building in Kerala, two premium cars, Rs 3,40,000 and foreign currency totalling Rs 2,08,124. The sleuths attached bank balances also in Bijoy's 57 accounts worth Rs 35,86 990. The enforcement agency said he illegally sanctioned and disbursed loan to the tune of Rs 26.60 crore in cash without any collateral due to systematic conspiracy hatched and perpetuated by the secretary and committee members of the bank since 2010. "The ED initiated a money laundering investigation on the basis of the FIRs registered by the Kerala police under section 420 of the IPC. Kerala police (Crime Branch) has registered more than 16 FIRs in Thrissur District regarding fraud in Karuvannur Service

RBI imposes Rs 1.25 crore penalty on Zoroastrian Co-operative Bank

The Reserve Bank of India has imposed a penalty of Rs 1.25 crore on Zoroastrian Co-operative Bank, Mumbai for non-compliance with certain directions, including one related to discounting of bills. In a release, the RBI said the bank had failed to comply with its directions on 'Discounting of Bills by UCBs Restricted Letters of Credit (LC)' and the provisions of the Rules, as it discounted accommodation bills under LCs without establishing the genuineness of underlying transactions/ documents and failed to preserve records in good order for a period of eight years. In a separate release, the RBI said a penalty of Rs 20 lakh has been imposed on Indian Mercantile Co-operative Bank, Lucknow for non-compliance with the certain norms related classification of non-performing assets. The central bank also imposed penalties on five other cooperative banks. The RBI, however, added that penalties are based on deficiency in regulatory compliance and is not intended to pronounce upon the valid

Maharashtra appoints liquidator to wind up Rupee Cooperative Bank

Over 200 employees risk losing their jobs

Bharti Axa Life, Accel infuse over Rs 111 cr as equity in Shivalik SFB

The SFB, an urban coop bank earlier, has a large presence in UP and MP; It has over 560,000 unique customers and runs 46 branches and 21 exclusive Business Correspondent Branches across northern India

Cracking the whip on co-op banks: A look at RBI actions in 2022 so far

Here is a look at the RBI actions on co-op banks in 2022 so far.