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RBI to have additional deputy governor for co-operative banks

To minimise dual control on co-operative banks, the Reserve Bank of India will soon have an additional deputy governor in charge of co-operative banks, said Anandrao V Adsul, Union Minister of State for Finance in Mumbai on Wednesday.

There would also be a supervisory board for the co-operative banks under the chairmanship of the new deputy governor.

The board will undertake audit and other supervision works while the state co-operative department will continue with other administrative control on the banks, he said.

The state co-operative department will have administrative control like registration and conductance of election to the board of such banks under its control, he said.

The scams and financial irregularities in the co-operative banks have been due to dual control over the banks by the Reserve Bank of India as well as the state government, he added.

On the recent ordinance to recover bad debts of the banks and the financial institutions, the minister said soon banks and financial institutions would be allowed to appoint receiver for maintenance and disposal of the assets acquired from the defaulters.

At present, the RBI has three deputy governors - Dr Rakesh Mohan, G P Munniappam and Vepa Kamesam.

UNI

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