Sources say the RBI has decided to sternly deal with the problem. There was a high level meeting of various departments including Economic Offence Wing and RBI in which it was decided to keep a close watch on the UCBs.
The apex bank has urged state govts to take strict action against the erring ucbs. The duel control of UCBs also came under the discussion in the high level meeting. Two banks one in Gujarat and another in Uttar Pradesh came for special mention for laundering money.
It has been noticed that the ucbs indulge in irregularities and the problem of irregularities becomes serious given the ucbs’ wide reach and penetration throughout the country with thousands of branches that claim lakhs of crores of rupees in deposits and advances.
The PTI release, however, did not mention the names of the banks which have been asked to close down. Indian Cooperative also failed to take reaction of Nafcub President Mukund Abhyankar as his phone was unreachable.