Rampant misappropriation and fraud committed in Rural Cooperative Banks in Odisha.

To

Shri Shaktikanta Das

Governor

Reserve Bank of India

Mumbai

Sub- Rampant misappropriation and fraud committed in Rural Cooperative Banks in  Odisha.

Sir,

At the outset, I express my sincere thanks and immense gratitude to you for playing the pivotal role in promulgation of the Banking Regulation amendment Ordinance 2020 to bring the Cooperative Banking Sector under the control and supervision of RBI. It is our request to you to expedite notification for rural cooperative banks to achieve the objectives of the amendment.

2. I take the opportunity to enclose  some news items published in leading newspapers in the State of Odisha regarding the rampant corruption and fraud taking place in Cooperative Banks in Odisha. The issues are summarised below:

●     The President of the scam involving  Angul United Central Cooperative Bank also happens to be President of Odisha State Cooperative Bank.

●     With the connivance of CEO and President of the Bank over a period of five years,  Cores of Rupees have been misappropriated by debiting interest paid account and crediting the proceeds to some fake depositors S. B. Account. Subsequently the amount had been drawn from the accounts.

●     The newspapers have reported that auditors had trailed the fraud to Data Centre of OSCB.

●     As it appears, intentionally such features had been inbuilt in the CBS software procured by the Apex Bank to promote frauds and misappropriations.

●     Though the serious glitches and shortcomings in the CBS software of OSCB was elaborately discussed in the statutory inspection of OSCB as on 31.03.2018 conducted by NABARD, the entire adverse observations were strangely deleted from the IR and congidum was issued modifying the IR ON THE GROUND THAT THE OBSERVATIONS WERE SUPERFLUOUS as per RTI reply of NABARD.

●     Though NABARD is entrusted with the responsibility of supervision u/s 35(6) of B.R Act, being a WORTHLESS organisation it had become silent spectator to the scams in Cooperative Banks in Odisha and remaining happy by writing letters to Registrar of Cooperative Societies drawing his attention and shifting the onus to him instead of taking action under its supervisory powers u/s 35(6) of B R Act.

Prayer

I urge upon your goodself to order an enquiry by RBI itself under Section 35(6) of B R Act and also ensure issue of the necessary notification by Government of India for immediate commencement of Sec 4 of the Banking Regulation Amendment Ordinance 2020 in the SCBs and DCCBs to save them from such robbery and loot.

Yours faithfully

Pradip Pradhan

Plot No.-D-27, Maitree Vihar,

Post-Rail Vihar,

Bhubaneswar-751023, Odisha

Email- pradippradhan63@gmail.com,

M-9936843482

Date-25.7.20

Copy with enclosures submitted for information and necessary action to:

1.    Regional Director, RBI, Bhubaneswar.

2.    Principal Chief General Manager, DoS, RBI, Mumbai.