118 co-operative banks not complying with banking norms

118 co-operative banks not complying with banking norms
PTI
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First Published: Tue, Dec 23 2008. 05 05 PM IST
Updated: Tue, Dec 23 2008. 05 05 PM IST
New Delhi: As many as 118 co-operative banks are not complying with the banking provisions, which requires them to keep a paid-up capital and reserves of Rs1 lakh, Parliament was informed on Tuesday.
“As on 30 September, 118 district central co-operative banks are not complying with the provisions which stipulates that all co-operative banks are required to hold an aggregate paid-up capital and reserves, the real and exchangeable value of which should not be less than Rs1 lakh,” Minister of State for Finance P.K. Bansal told in a written reply to the Rajya Sabha.
There are 19 states having such co-operative banks, with co-operative banks in Andhra Pradesh, Bihar, Uttar Pradesh and Madhya Pradesh reporting the highest number of non-compliance, he said.
In regard to the prevention of frauds, he said, there is a system of periodic reporting by the banks, besides monitoring and reviewing at the levels of regional office, head office and board of supervision of the National Bank for Agriculture and Rural Development (NABARD).
Also, guidelines have also been issued for taking measures for prevention of frauds. A Central Fraud Monitoring Cell has been constituted at the National Bank for Agriculture and Rural Development (NABARD), for monitoring the fraud cases above Rs10 lakh in co-operatives and regional rural banks, Bansal said.
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First Published: Tue, Dec 23 2008. 05 05 PM IST