Sharad Pawar wrote to PM Modi, said - Cooperative form of cooperative banks should be protected
Mumbai. Nationalist Congress Party (NCP) chief Sharad Pawar has written to Prime Minister Narendra Modi , saying that the existence of cooperative banks and their cooperative character should be preserved. The former Union Minister rejected the notion that cooperative banks are worse than other banks, or that converting them into private institutions will eliminate fraud or irregularities. Pawar posted his letter on Twitter on Tuesday. It mentions Modi's address to the nation on the occasion of Independence Day . Pawar said, "You (Modi) said that cooperative banks have been brought under the supervision of the Reserve Bank to protect the interests of the middle class."
He said, "I welcome it and appreciate this purpose." Pawar said, "Though honestly I also say that cooperative banks and their cooperative character should be protected." Said that cooperative banks are the backbone of rural economy. Pawar said that it is impossible for the Reserve Bank to examine all the Urban Co-operative Banks (UCBs) every year through the extensive branch network. He said that this is why the central bank has been trying to convert UCB into private banks since 1993 but could not succeed.
The former Union Minister said, "... Although I agree with you that there should be financial discipline in banks, it is wrong to say that converting cooperative banks into private banks on fund embezzlement, financial irregularities and fraud Will be completely reinforced. He said that according to the RBI, 3,766 and 2,010 frauds were reported from public and private sector banks respectively in 2019-20, whereas in cooperative banks the number was only 181.
Pawar said that at the same time a total of Rs 64,509.90 crore fraud was related to public sector banks which accounted for 90.20 percent of the total amount of frauds in banks during the year. At the same time, fraud of Rs 5,515.10 crore has been reported in private sector banks, which is 7.69 percent of the total amount. "That is why it is not correct to say that financial irregularities or fund malfunctions only occur in cooperative banks," he said in the letter, urging the Prime Minister to look into the matter in person and do justice to cooperative banks.