Irregularities detected in cooperative banks investment portfolio

Mumbai, March 23 | Updated: Mar 24 2006, 05:30am hrs
Nabard has detected a list of irregularities in the half-yearly review of investment portfolios of state cooperative banks /district cooperative banks. Many banks have been found not to have undertaken the half-yearly review of their investment portfolio. Some banks have not framed their investment policy.

As per extant instructions, all StCBs/DCCBs have been instructed to frame their investment policy. If any bank is not undertaking investment in government securities, PSU bonds, etc, it should adopt a resolution in this regard and forward the same to regional office of Nabard and RBI concerned, said RBI.

Some banks do not have approved panel of brokers. Many StCBs/DCCBs have written that as they do not involve brokers in any transaction, no panel for the purpose has been approved. All StCBs are advised to prepare an approved panel of brokers, which can be used by all the DCCBs also as and when they undertake any transaction through any broker.

By Default
Many banks have been found not to have undertaken the half-yearly review of their investment portfolio
Some banks do not have approved panel of brokers
StCBs/DCCBs have placed funds as deposits with PSU/companies / corporations/ UCBs/NBFCs, etc