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Co-Op Banks Threaten To Surrender Licences

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Our Banking Bureau BUSINESS STANDARD
Last Updated : Jan 28 2013 | 2:19 AM IST

Want Amendment Bill to be diluted

Stung by the proposed amendments to the Banking Regulation Act, 1949, co-operative bankers have threatened to take to the streets or even surrendering their licences if the Act is passed by Parliament in its present form.

The bankers are opposed to the amendments which seek to bring co-operative banks on a par with commercial banks as far as regulatory treatment and corporate governance norms go.

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Co-operative bankers plan to rope in the services of members of Parliament (MPs) from Maharashtra, cutting across party lines, to get the Bill diluted. The Bill seeks to bring parity between co-operative and commercial banks by repealing Section 56 of the Banking Regulation Act (as applicable to co-operative societies).

Bankers feel the powers of co-operative bank boards is sought to be curtailed by vesting the Reserve Bank of India (RBI) with the sole authority to accept/ reject the appointment of chairman (either part-time or full-time) and managing director/ chief executive officer.

They averred that as

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First Published: Sep 19 2003 | 12:00 AM IST

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