Urban Cooperative Bank should have its own Monitor

This is high time Urban Cooperative Banks should develop within themselves a monitor which would weed out the corrupt element before it strikes the bank numb and rob depositors of all confidence. Case in point is Bhandari cooperative bank.

Bhandari cooperative bank headquartered in Dadar in Mumbai and having operations in Mumbai and Thane is keeping Anti Corruption Cops busy these days. The Chairman and Managing Director along with a fictitious developer swindled neat Rs 35 crores from the Bank.

Though they have been arrested but depositor’s confidence has shaken so much that they have lined up before the banks to withdraw their money. Police have been deployed, seeing the huge rush of people and fearing clash between depositors and Bank officials.

The classic modus operandi was employed with the Chairman and executives sanctioning loan to a developer who had no plan at all to build colonies. About Rs 20 crore was sanctioned. Not satisfied with this amount, they forged documents further and took vehicle loan to the tune of Rs 15 cores.

Cooperative banks run on the trust and such incidents shake the confidence of people. Sad part is the information with the ACB, which says more cooperative banks are under its scanner for such fraudulent withdrawal of money.

This is high time Urban Cooperative Banks should develop within themselves a monitor which would weed out the corrupt element before it strikes the bank numb and rob depositors of all confidence. Case in point is Bhandari cooperative bank. Bhandari cooperative bank headquartered in Dadar in Mumbai and having operations in Mumbai and Thane is keeping Anti Corruption Cops busy these days. The Chairman and Managing Director along with a fictitious developer swindled neat Rs 35 crores from the Bank. Though they have been arrested but depositor’s confidence has shaken so much that they have lined up before the banks to withdraw their money. Police have been deployed, seeing the huge rush of people and fearing clash between depositors and Bank officials.  The classic modus operandi was employed with the Chairman and executives sanctioning loan to a developer who had no plan at all to build colonies. About Rs 20 crore was sanctioned. Not satisfied with this amount, they forged documents further and took vehicle loan to the tune of Rs 15 cores. Cooperative banks run on the trust and such incidents shake the confidence of people. Sad part is the information with the ACB, which says more cooperative banks are under its scanner for such fraudulent withdrawal of money.

Source / Courtesy : www.indiancooperative.com