Press Release
of OSAA
on
Banking Regulation ( amendment) Ordinance, 2020
Bhubaneswar : 30.6.20. Series
of efforts of Social Activists , more particularly RTI
Activists working under the banner of Odisha Soochana Adhikar Abhijan (OSAA) in terms of raising issues of corruption and
irregularities in Odisha State Cooperative Scam
and submitting plethora of memoranda to the the Prime Minister of India,
Union Finance Minister, Reserve Bank of India, NABARD demanding inquiry into Rs. 500 crore scam in OSCB
committed by State Govt.
officials mostly Bishnupada Sethy , IAS , the then Management-in-charge ( 2013 TO 2015) and Sri Tusar Kanta Panda, Managing Director,
OSCB ( 2013 to 2018) yielded big results, when the Govt. of India declared
ordinance for amendment of Banking Regulation Act, 1949. The Banking
Regulation Act, 1949 amendment Ordinance, 2020 seeks to enforce banking
regulation guidelines of the RBI to cooperative banks (like other commercial
banks), while administrative issues will still be guided by Registrar of
Cooperative of Societies. This Amendment has given sweeping power to RBI on the
regulatory and governance functioning of all Cooperative Banks of the country
including the State Cooperative Banks, District Central Cooperative Banks and
Urban Cooperative Banks. The Ordinance restricts cooperative banks from making
loans or advances on the security of its own shares. Further, it prohibits the
grant of unsecured loans or advances to its directors, and to private companies
where the bank’s directors or chairman is an interested party.
RBI was earlier shying away from their
responsibility on the regulatory and governance failure issues of Cooperative
Banks taking plea of duality of control and now after promulgation of the
ordinance, sweeping powers have been given to RBI on regulatory and governance
matters of all types of Cooperative Banks. Henceforth it will not be easy for
RBI to dump Cooperatives to the mercy of State Governments.
The areas of
regulation which the RBI can now (by the Ordinance) can exercise are:
1. Issue of share
capital and similar securities by co-operative banks would be regulated.2. The
RBI can give directions for minimum capital requirement for cooperative Banks
or raising the capital by the means of both Equity and Debt instruments.
3. The
appointment of CEOs would require prior approval from the RBI and in this
respect, qualifications would be set as to who could be appointed as followed
in case of commercial banks.
4. RBI may
supersede the Board of Directors of a multi-state cooperative bank for up to
five years and supplement it with Board of Management. In the case of a
co-operative bank registered with the Registrar of Co-operative Societies of a
State, the Reserve Bank shall consult the concerned State Government before
issuing order for supersession of the board of directors under section 36AAA of
the Banking Regulation Act, 1949.
5. RBI can
supersede management in case of liquidation or failure of any cooperative
bank.6. The RBI is empowered to seek information from cooperative banks in the
form of returns about the assets, liabilities, profitability, and operations.
7.
The RBI can direct merger or consolidation of cooperative banks.
8. The RBI can
now specify conditions when unsecured loans or advances may be granted and
specifies the manner in which the loans may be reported to RBI.
9. The
cooperative banks would be audited according to RBI rules.
Since 2015, RTI Activists like
Pradip Pradhan, Ashok Nanda, Sudhir Mohanty , Srikant Pakal have been
giving series of petitions,
memorandum and complaints to the
Reserve Bank of India, NABARD, the Prime Minister of India, Union Finance
Minister seeking inquiry into multi-crore scam in OSCB
and quick legal action against
perpetrators of crime. On the basis of several petitions , NABARD
conducted statutory inspection of Odisha
State Cooperative Bank with reference to
its financial position as on 31st
March 2018. This inspection Report
presented to Registrar of Cooperative Societies, Odisha in April ,2019
gives a picture of huge fraud, forgery and loot of public money in name of various
schemes and agriculture loan to the
farmers. Though one year passed, the
RCS, Odisha, OSCB did not take any steps .
The
date-wise petitions
submitted by RTI Activists on fraud,
forgery, corruption in OSCB is as follows.
Date of
Submission of Complaint
|
Authority
who complaint was files
|
Content
of complaints
|
28.8.17
|
The Chief General Manager, NABARD, Bhubaneswar
Regional Office, Bhubaneswar
|
Financial
Irregularities and misappropriation of Public Funds in Odisha State
Cooperative Bank.
|
1.7.19
|
Governor, Reserve
Bank of India, Mumbai
|
Allegation against financial irregularities
in Orissa State Cooperative Bank under protection of Senior officials of
NABARD.
|
9.7.19
|
Chairman, NABARD,
Mumbai
|
Request for inquiry into Detection of massive financial and
governance irregularities in the Statutory Inspection of Orissa State
Cooperative Bank conducted by NABARD.
|
16.7.2019
|
Governor, Reserve
Bank of India, Mumbai
|
Manipulation of
statutory inspection report of Orissa State Cooperative Bank (OSCB) conducted
u/s 35 (6) of B. R. Act, 1949 by officials of NABARD.
|
1.7.19
|
Sri Narendra
Damodardas Modi
Hon’ble Prime
Minister
New Delhi
|
Allegation
against financial irregularities and misappropriation of Central fund
meant for farmers in Orissa State Cooperative Bank under
protection of Senior officials of NABARD.
|
27.7.19
|
The General
Manager,
DCBR, Reserve
Bank of India, Bhubaneswar Regional Office,
Bhubaneswar.
|
Manipulation of
statutory inspection report of Orissa State Cooperative Bank (OSCB) conducted
by NABARD u/s 35 (6) of B. R. Act, 1949
|
Pradip Pradhan
RTI
Activist
M-9937843482
Date-
30.6.20
