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

In contrast, the atrocious indebtedness ratio of scheduled commercialized banks stood astatine 7.5% arsenic of March 2021, having eased from 8.4% a twelvemonth before, the RBI said successful its latest study successful July.

The fig of frauds successful municipality and authorities cooperative banks dropped successful FY21 from a twelvemonth agone with tighter oversight by the cardinal bank, Parliament was informed connected Tuesday.

Finance curate Nirmala Sitharaman said municipality cooperative banks reported 323 frauds successful FY21 arsenic against 568 successful the erstwhile twelvemonth and 1,193 successful FY19. Similarly, authorities cooperative banks witnessed 482 frauds successful FY21, down from 508 successful the erstwhile fiscal but overmuch higher than the FY19 level of 290, she said successful a written reply to a question.

While Maharashtra, location to the highest fig of cooperatives, accounted for 67% of the fraud cases successful municipality cooperative banks successful FY21, Kerala made up for 44% of the frauds successful authorities cooperative banks.

The finances of cooperative banks came nether heightened scrutiny precocious aft the authorities carved retired the section of practice from the agriculture ministry to marque it a full-fledged ministry nether Amit Shah.

Before that, affairs of the cooperative assemblage came nether absorption pursuing the situation astatine the Punjab Maharashtra Cooperative (PMC) Bank successful 2019. This had prompted the authorities to amend the Banking Regulation Act to empower the RBI for much effectual regularisation of cooperative banks. The thought was to amended support the interests of depositors and debar a PMC Bank-like situation successful future.

The amendment was besides aimed to guarantee that the “affairs of the cooperative banks are conducted successful a mode that protects the involvement of depositors by expanding professionalism, enabling entree to capital, improving governance and ensuring dependable banking done RBI’, Sitharaman said successful the reply.

Last month, the curate had told the Rajya Sabha that gross atrocious loans of territory cardinal cooperative banks (DCCBs) were among the highest successful the banking system, astatine 12.6% (Rs 35,298 crore) of their advances arsenic of March 2020.

The gross non-performing assets (NPAs) of municipality cooperative banks (UCBs), too, remained elevated astatine 11.3% (Rs 35,528 crore) astatine the extremity of March 2021. However, the gross NPAs of authorities cooperative banks were 6.7% (Rs 13,477 crore) arsenic of March 2020, Sitharaman had said successful a connection successful the Upper House.

In contrast, the atrocious indebtedness ratio of scheduled commercialized banks stood astatine 7.5% arsenic of March 2021, having eased from 8.4% a twelvemonth before, the RBI said successful its latest study successful July.

There are 34 authorities cooperative banks, 351 DCCBs and 1,534 UCBs successful the country. Many of the cooperatives, acknowledgment to their opaque operation and terrible governance issues, person been allegedly utilized to funnel black money for long.