Abhyudaya Cooperative Bank: Will this cooperative become the next PMC Bank? RBI in action, took command in its own hands
The crisis of cooperative banks in India is not ending. Before the case of one cooperative cools down, the market heats up due to the crisis of someone else. In the latest case, another cooperative is in trouble. It is feared that its condition may also become like that of PMC Bank.
No restriction on banking activities
This case is of Abhyudaya Cooperative Bank and in this case the Reserve Bank Has taken big action. The Reserve Bank on Friday announced to supersede the board of Abhyudaya Cooperative Bank for the next one year. However, the Reserve Bank also said that no restrictions have been imposed on the business of the bank. According to the Reserve Bank, the normal banking activities of Abhyudaya Cooperative Bank will continue as before. It has been decided to supersede the board of the cooperative bank. The Central Bank has appointed former Chief General Manager of State Bank of India, Satya Prakash Pathak, as the Administrator of Abhyudaya Cooperative Bank. Satya Prakash Pathak will handle all the affairs of Abhyudaya Cooperative Bank for the next one year.
Members of Committee of Advisors
Apart from the Administrator, RBI also appointed a Committee of Advisors. Whose job is to assist the administrators in their work. Former General Manager of SBI Venkatesh Hegde, Chartered Accountant Mahendra Chhajed and former Managing Director of Cosmos Cooperative Bank Limited Mahendra Gokhale have been made members of the Committee of Advisors.
For this reason action had to be taken
The Reserve Bank says that there were serious objections regarding the operation of Abhyudaya Cooperative Bank. Due to poor standards of governance, it has been forced to take such action. The bank will now work under the supervision of the Administrator. Since there is no business restriction imposed on Abhyudaya Cooperative Bank, normal banking operations will continue even after this action.
This cooperative is from Maharashtra only
Abhyudaya Cooperative Bank is Mumbai centered. . The crisis of PMC Bank which came to light some time ago was also Maharashtra centric. In the case of PMC Bank also, the Reserve Bank ultimately needed to take the entire command into its own hands. In the case of that bank, restrictions were also imposed on banking activities.
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