Can any one throw some light on maharastra apex finance scam????????
THE involvement of Madhavpura Co-operative Bank and Classic Co-operative Bank in the pay order scam turns the spotlight once again on the institution of cooperative banks. Although observers point out that the current scam is a case of collusion and frau d by bank officials and brokers (as demonstrated by the dishonour of pay orders), it does not relieve the system at large of the risks posed by these entities. Despite being endowed with a local base, reach and familiarity with the borrowers, the cooperative banks have never really exploited the advantages. More often than not, they have been hamstrung by unprofessional and politicised managements and unsound f inancial and accounting practices. These negatives have been compounded by poor regulation and supervision from dual controllers — The Registrar of Co-operative Societies in the respective States (and an All-India Registrar for Cooperative Banks which operate in more than one state) and the Reserve Bank of India.
