National, private banks report more frauds than cooperatives: Ajit Pawar

Maharashtra deputy chief minister and finance minister Ajit Pawar on Friday said that though nationalised and private banks report more frauds worth crores than cooperative banks, the latter face criticism over financial bungling

Maharashtra deputy chief minister and finance minister Ajit Pawar on Friday said that though nationalised and private banks report more frauds worth crores than cooperative banks, the latter face criticism over financial bungling.

Speaking at the inauguration of state-level training session of urban cooperative banks at Pune on Friday, Pawar said, “One only needs to look at banks running in the country to be informed that nationalised and private banks report more frauds than cooperative banks.” (HT FILE PHOTO)

Pawar said, “I am not supporting any bank fraud, but cooperative movement is a common man’s initiative to provide justice and financial support to public. However, the media and people only blame cooperative banks for all financial wrongdoings.”

Speaking at the inauguration of state-level training session of urban cooperative banks at Pune on Friday, Pawar said, “One only needs to look at banks running in the country to be informed that nationalised and private banks report more frauds than cooperative banks.”

He said, “As per the available data, in 2018-19, 3,766 frauds were reported in national banks involving Rs64,509 crore, private banks saw frauds of Rs5,500 crore and foreign banks Rs1,000 crore. Cooperative and urban cooperative bank frauds amounted to Rs220 crore. However, there are more inquiries against cooperative banks. The cooperative movement is more than 100 years old. For a few cases, the whole sector is blamed.”

Pawar said that various steps have been taken to check bank frauds.

“The government has increased the bank deposit insurance cover from ₹1 lakh to ₹5 lakh. The cooperative department has been given the powers to attach property of defaulters and recover money. The government would help to establish training centre for banking staff,” he said.

‘Plan to keep only few nationalised banks’

Ajit Pawar said that there are plans at the central level to keep a 7-8 nationalised banks and merge small entities into it. “Hence, there will be good opportunity for cooperative sector to tap this market in future,” he said.