 "FinMin uncomfortable with Maharashtra's criminal action against bank officers")
Displeased with the criminal proceedings initiated by the Maharashtra government against bank officials for allegedly failing to release funds to farmers, the Union finance ministry intends to step in.
The ministry has asked Bank of Maharashtra (BoM) and Dena Bank, whose officials were so targeted, to take up the matter with the state government. A senior central finance ministry official said the department of financial services would follow.
Last month, Chief Minister Devendra Fadnavis had warned banks against shortcomings in extending financial assistance to farmers. Consequently, some district collectors initiated proceedings under the Indian Penal Code against two dozen branch managers of public sector and cooperative banks that had allegedly missed the targets.
Also, Indian Banks’ Association (IBA) has sought the Reserve Bank of India’s intervention to halt such an “unwarranted” step. The State Level Bankers’ Committee (SLBC) for Maharashtra would be pursuing the matter. Pune-based BoM is convener of SLBC, said IBA officials. SLBC is a consultative and coordination body of all financial institutions in each state. The All India Bank Employees Association said it had also taken up the issue with the central ministry.
The ministry has asked Bank of Maharashtra (BoM) and Dena Bank, whose officials were so targeted, to take up the matter with the state government. A senior central finance ministry official said the department of financial services would follow.
Last month, Chief Minister Devendra Fadnavis had warned banks against shortcomings in extending financial assistance to farmers. Consequently, some district collectors initiated proceedings under the Indian Penal Code against two dozen branch managers of public sector and cooperative banks that had allegedly missed the targets.
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The state government charged that officers of district central cooperative banks had failed to give financial assistance to tackle the agrarian crisis.
Also, Indian Banks’ Association (IBA) has sought the Reserve Bank of India’s intervention to halt such an “unwarranted” step. The State Level Bankers’ Committee (SLBC) for Maharashtra would be pursuing the matter. Pune-based BoM is convener of SLBC, said IBA officials. SLBC is a consultative and coordination body of all financial institutions in each state. The All India Bank Employees Association said it had also taken up the issue with the central ministry.