Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

After PMC shock, work starts on stronger rules for cooperatives

Have something to say? Post your comment

Comments are moderated and will be allowed if they are about the topic and not abusive.

Characters remaining (1500)

Iype

You can add any amount of rule books. If there is no proper and honest looks into the accounts, this will keep repeating

these fraud looters and cheaters in pmc or any bank should be in jail with their whole family with take over all their assests and houses with every single rupee. There is no strict and harsh law in India.

Defat Maharashtrians & Dear all depositers of PMC bank, u all have seen how 2000 trees in Aarey was slaughtered by BJP led Fadnivas Govt in Maharastra all night for 2 days before friends of trees & nature succeeded giving lease to 1000 trees to live a bit longer till election in maharastra is over. This is exactly what Finance ministers, Amit shah and PM is doing to your deposit in bank. They are buying time till election and once they win they will axe your deposit along with rest of 1000 trees in Aare milk colony. You guys must force Govt declare your savings and its interests will be paid by RBI & with effect from immediately . Let RBI sell the bank they way it wants to recover the assets of BJP affiliated people who looted the bank from congress era.

In all the financial frauds the role of auditor must be investigated and loopholes need to be addressed.From Satyam computers to PMC we have seen that the auditors are frauds.It is time to make them accountable.

Yash Pal (Location) replies to Anand v

This will close a very big loophole.

Rohan (india)

Time to start talking about safety of LIC Policy Holders Money.

She will wipe each and every tear of all the depositor with the smirk on her face. Rest assured. Next time instead of taking your money to a Co-Op rapist take it to the race course - at least you get a fair chance to win the jackpot.

Vilas

crooks are always one step ahead . Bureaucraric steps will never be able to catch them.

The co operative banks never operate on the principle of cooperatives. They are immediately converted in to family concerns. There has to be a mechanist to guard against this tendency. There should be an open debate on the root cause and remedy.

Stronger rules will immediately bring out frauds in almost all the co operative banks. It will be great.

Ramesh

''To lock the stable door,after the stead is stolen''-so goes the saying. Had these preventive measures been taken earlier, the present crisis of ''Implosion of PMC Bank won''t have stirred up a hornet''s nest. It''s also told that the man is wise by experience. But much water has flown under the bridge before gaining the so-called wisdom. Depositors are running from pillar to post to get back their hard-earned money which was retained by way of deposits in the PMC Bank. It devolves on the authorities to immediately satisfy the depositors'' demand before initiating any punitive action.

Ramaswami

not after the horse is bolted. catch the jorse first

Ramesh

''To lock the stable door

Dilip

Conceptually cooperative banks are very good. But their governance and control by regulators are very weak. Coop Dept of states which has main control on these are not that efficient. Even after a number of mishaps eg. Madhopura and others, it is not clear why States and Centre is silent on imposing strict governance. There should also be cap on their size or triggers when they cross business of say 500cr/ 1000cr. Are they monitorable through CBS, many are not. RBI need to tighten the belt for safeguarding money of public/ members.

Wonder why are these Officials in Authority SILENT on raising the Guarantee of Deposits in any Bank and IMMEDIATE enactment of LAW be done for the benefit of ALL PEOPLE of the Country who always depend on these Banks to SAVE their hard earned MONEY and yet are the ONES who LOSE such Life savings whenever such BANKS loot with nexus of Promoters and Political Class and Blame some other factors for the LOSS but in reality these very PEOPLE who elect these Members to Office LOSE their SAVINGS and MUST be FORTIFIED at once

Ravi

banking system in india is questionable after knowing that in the cases like PMC fraud, account holders will get only 100000 as compensation no matter whatever balance it has above 100000. if this is true then why should we go for digitization and why should we keep money in bank.

Bring them under RBI control . Wrong reporting Bank executives to be jailed and sacked

Rewarding

stronger rules are needed to contain frauds

Praker (Bangalore)

Merge all cooperative banks based on state of operations.

Girija

Our dear Governor and FM when work jointly, some positive decision will surely be taken. If merged with one of stronger bank, its very nice ,now the PMC Customers need not worry. But the earliest the better. Thank you Nirmala Madam. You have given some solace to the depositors. Though years back, South indian coop.bk.depositors lost lakhs of their money, now atleast this should not happen in the future. Rules must be changed in favour of the depositors.

Subbu India (Bengal)

Some greedy persons will always take the risk of keeping money in NBFC or Chit funds.

Vihin (Nihiv)

What happen to the Rule Book you made for PNB scam? Is Modi writing poems on the balck pages of the rule book?

Building a home in today’s era can be very difficult due to the increasing cost of raw material and labor. Thankfully, some banks are providing home financing for Pakistani people.I have a List of Banks Providing Home Loans in Pakistan to know about these banks and their details read more on banks providing home loan

Ramesh

THE RESPECTED MADAM THE FM SAID EARLIER THAT ITS RESPONSIBILITY OF THE RBI... NOW SAYS THE F MINISTRY N RBI WORK JOINTLY..... INDECISIVE N NO ACCOUNTABILITIES.,....

Enagula

Stronger rules is a welcome step.At the same time a system of loan verification approval by RBI to check the Colateral security, before the concerned bank releases any loans of more than a crore.

Kinnu (BLR)

Natuonalize al cooperative banks and make one mega bank called The cooperative banks of India limited Under RBI supervisions. Locally they will work as local banks nut National they I’ll work as bank like SBI

Aruun

Why we are always waiting for a shock treatment this shock is terrible for the depositors who are having sleepless nights of loosing their hard earned sweat and blood life time saving under theat due this systemic flaw. RBI should make it good as the depositors had to rely on them.

Oversight is needed but not post facto. What abt all the pains that all customers have gone through and no guarantee that money will be recovered. Will lost money be again a hit on tax payer?What we need is oversight and tight regulation on the credit assessment and loan approval process.What India needs is not just oversight but also PCR - public credit registry which can monitor all loans real-time and help track such frauds with automation.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service