Ghazipur Purvanchal Co-op Bank scam: RBI keeping close watch on situation

The Reserve Bank of India is closely monitoring the misappropriation of funds at Purvanchal Co-operative Bank in Ghazipur and has barred the bank from accepting new deposits and disbursing funds for six months. A Special Investigation Team has been constituted to probe the case.

The Reserve Bank of India (RBI) is keeping a close watch on the developments unfolding in Ghazipur where misappropriation of funds was reported from the Purvanchal Co-operative Bank and the district police has recommended the Uttar Pradesh Police’s Special Investigation Branch (SIB) Cooperative Cell to conduct a probe into the scam.

Ghazipur Purvanchal Co-op Bank has six branches and serves approximately 19,000 depositors. (For Rep)

Those aware of the development said the RBI has already stepped up its vigil and barred the Purvanchal Cooperative Bank from accepting fresh deposits and disbursing funds for six months with effect from close of business on August 29, 2023. An FIR was lodged in this regard on August 30, 2023.

“Yes, we are keeping a close watch on the situation in Ghazipur and the district police is taking further follow-up action. The SSP, Ghazipur, has constituted a Special Investigation Team (SIT) to probe the case,” said a senior RBI officer.

Senior superintendent of police (SSP), Ghazipur, Omvir Singh confirmed that a three-member SIT has been constituted to probe the case. “The SP (city), Ghazipur, is leading the SIT. All the documents need to be scrutinised and the investigation is in progress. We are writing to the Uttar Pradesh Police’s SIB Cooperative Cell to conduct a probe into the case,” Singh added.

It has six branches and serves approximately 19,000 depositors with total deposits of about ₹40 crore. There were gross irregularities in the bank and it gave incorrect information to the RBI showing SLR of ₹1.97 crore which was zero as per the CSGL (Constituent Subsidiary General Ledger). The information given about the CRR (Cash Reserve Ratio) was incorrect. The bank did not give complete information to the RBI’s inspectors.