“There is a need to amend the section three and five of the Protection of Depositors Act,” the minister told the assembly in his reply to a notice under rule 304 on white-collar crimes in the state Assembly on Thursday.
The government has also decided to provide representation from the depositors on the boards of the co-operative banks and it will create a professional committee to oversee the financial decisions of the Urban banks, he added.
The home minister said that the state government has arrested about eight auditors of the co-operative banks in connection with swindling of funds. It has also planning a coordination committee between officials of RBI and Registrar of Cooperatives.
Further, the state government is also actively pursuing a proposal to check dubious schemes through an enactment of a new law Andhra Pradesh Multilevel Marketing and Pyramid Selling Schemes (Prohibition) Act.