There is revelation that urban cooperative banks are practicing favouratism and nepotism in giving donations to trusts and institutions.
Angered by the situation, the apex bank has asked urban cooperative banks to stop making donations to trusts and institutions where directors, and or their relatives hold positions or are interested, even within the permissible ceiling of one percent of the published profits of the bank for the last year.
It is worth mentioning that in 2005 the apex bank had issued a circular underscoring donations of the UCBs should not exceed one percent of their published profits of the previous year and donations made to state or union govt funds should not exceed two percent of their published profits.
