In FY21, 323 frauds in UCBs and 482 in state co-op banks: FM Sitharaman

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The number of frauds in cities and states of operating banks fell in FY21 from last year and was seen by the central bank, announced on Tuesday.

Finance minister Nirmala Sitharaman said urban cooperative banks had reported 323 frauds in FY21, compared to 568 last year, and 1,193 in FY19. Similarly, state-owned banks witnessed 482 lies in FY21, down from 508 in the first fiscal but higher than the FY19 level of 290, he said in a written response to a question.

While Maharashtra, the house with the highest number of partners, accounted for 67% of fraud cases among the city’s cooperative banks in FY21, Kerala had 44%. % of fraudulent funds in cooperating banks.

The finances of the cooperative banks, came to a head so far, after the government merged the cooperation department from the agriculture department, making it a full-fledged minister under the administration of Amit Shah.

Before that, the issues of the working group started to progress after the bankruptcy of the Bank of Punjab Maharashtra (PMC) in 2019. This prompted the government to restructure the Legislation. the Regulations mandate the RBI for effective regulation of cooperative banks. The idea is to better protect the rights of commercial investors and avoid PMC Bank similar incidents in the future.

The amendment was also designed to ensure that “the issue of banking cooperation is addressed in a manner that protects the rights of investors by increasing professionalism, allowing access. to the capital., improve management and ensure efficient investments through the RBI’, Sitharaman said.

Last month, the minister told the Rajya Sabha, the debt – to state banks (DCCBs), was one of the best loans ever executed to the bank, at 12.6% (Rs. 35,298 crores) of their revenue from March 2020.

In comparison, the bad credit rating of commercial banks rose to 7.5% through March 2021, when it cleared from 8.4% last year, the RBI said in its report.

There are 34 state cooperative banks, 351 DCCBs, and 1,534 UCBs in the country. Many cooperative companies, thanks to their opaque structure and strict management, have long been used to spend black money for a long time.

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