RBI appoints administrator for Yashwant Co-operative Bank amid irregularity concerns

Co-operatives commissioner and registrar of co-operative housing societies, Maharashtra, on May 30 appointed administrator for Yashwant Co-operative Bank Ltd following complaints of irregularities

Pune: The co-operatives commissioner and registrar of co-operative housing societies, Maharashtra, on May 30 appointed an administrator for Yashwant Co-operative Bank Ltd following complaints of irregularities. The decision comes after Bharatiya Janata Party (BJP) Member of Parliament (MP) Medha Kulkarni met Union home and cooperation minister Amit Shah at his residence recently and highlighted the financial and administrative irregularities at the bank.

Co-operatives commissioner and registrar of co-operative housing societies, Maharashtra, on May 30 appointed administrator for Yashwant Co-operative Bank Ltd following complaints of irregularities. (Getty Images/iStockphoto (PIC FOR REPRESENTATION))

The parliamentarian sought Shah’s help in securing the return of depositors’ money from the bank headquartered in Satara, Maharashtra.

Deepak Taware, commissioner, co-operatives and registrar of co-operatives, said that the statutory inspection of the bank by the Reserve Bank of India (RBI) for 2024-2025 found irregularities and violations that could be detrimental to the interest of depositors.

Kulkarni in her complaint to the co-operatives ministry had pegged the bank scam to the tune of ₹150 crore.

During a recent meeting with the bank’s depositors and borrowers in Karad, it was found that fake signatures, forged documents, and false guarantors were used to approve loans, and forceful attempts were made to recover debts by seizing land and property from borrowers.

Kulkarni demanded that an independent administrator should be appointed for the bank and, in future, it should be merged with a well-functioning bank to protect depositors from further losses. She also sought an investigation into the bank scam.