By Our Financial Correspondent
New Delhi, July 25 (IVC) The Union Government is contemplating of tightening its hold over the co-operative sector as a whole especially co-operative service banks with a view to protecting its depositors and customers as well as its shareholders.
It is proposed to merge the week and mismanaged and financially unstable ones with the strong and efficient and financially stable banks with a view to protecting the depositors. The proposed efforts of the Union Government would be for the safety and security of the depositors money and their pledged property.
It is also under the contemplation of the Union Government to liberate the co-operative sector from the clutches of the politicians. Strict restrictions in the appointment of staff and certain qualifications for the election to the Board of Directors of the sector would be made.
Now the co-operative sector are being managed by the rank-and-file of the political parties and no fixed qualification for being elected to the Board of Directors of the Co-operative service banks and hence no accountability for them.
Several co-operative service banks in the State are not financially stable and financially in a stringent condition and no specific qualification for the shareholders to be elected to the Board of Directors. The mismanagement due to lack of efficiency was shown as the facet of the failed co-operative service bank .
Now there is no control by the Union Government over the Co-operative service sector in the country. The proposed stipulations over the Co-operative sector by the Union Government was to protect the depositors’ hard earned money. The co-operative sector dealt with trillions of rupees in the country.
The failure of the Karuvannoor Sevice Co-operative bank was brought out to light that directors have made their ill-gotten wealth was converted into white money. An order in this regard would be brought out and would be enforced shortly.
