Rupee bank is strong, remedies soon: RoCS

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Pune, February 14: : The Rupee bank is financially strong and remedial measures will be taken to restore its operations, said the commissioner for cooperation and registrar of cooperative societies Mr Ratnakar Gaikwad. The RBI action will send a strong signal to all the cooperative banks against misleading their members and manipulating operations, he added.

“Two to three more banks are under our surveillance and we are closely monitoring these banks,” Mr Gaikwad said. Violation of RBI banking guidelines and rising NPAs will be a cause for concern, he said.

Mr Gaikwad said it was very rare to use Section 110A(III) of the Maharashtra Cooperatives Societies Act 1960. “The enquiry work has begun and, if found guilty, directors could be prosecuted under Sec146 and 88 of the Maharashtra State Coop Act 1960,” Mr Gaikwad said. Strict action will also be taken against the bank officers who violated the RBI guidelines. The CEO is fully responsible for the bank’s affairs and will look into the extent to which the bank officials were responsible.

Govt orders probe into irregularities

Our Bureau
Pune, Feb 14: AN enquiry has been initiated to look into the irregularities at the Rupee Cooperative bank. The order has been issued under Section 83 of the Maharashtra Cooperative Societies Act, 1960. Mr Prahlad B Kokre, joint director, agricultural marketing, Maharashtra State, Pune, has been appointed as the enquiry officer to investigate the irregularities pointed out in the RBI inspection report. The enquiry officer will be given two months time to ready its report.

Meanwhile, the administrator has six months to put the house in order and hold fresh elections for constituting a new board.