Lok Sabha Question No. 1824 (UNSTARRED), answered on 2023-07-31
Subject: Cooperative Banks
Ministry: CORPORATE AFFAIRS
Asked by: Pashupati Nath Singh

## MINISTRY OF CORPORATE AFFAIRS

## GOVERNMENT OF INDIA LOK SABHA

## UN-STARRED QUESTION NO. 1824

TO BE ANSWERED ON MONDAY, JULY 31, 2023/ SRAVANA 9, 1945 (SAKA)

## COOPERATIVE BANKS

## QUESTION

1824. SHRI PASHUPATI NATH SINGH:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) the total number of cooperative banks in the country;
- (b) whether the Government is aware that more than 1000 cases of frauds in cooperative banks have been registered during the last five years;
- (c) if so, the details thereof and the action taken/being taken by the Government thereon; and

(d) the initiatives taken or likely to be taken by the Government to maintain the trust of the people on the cooperative banks in the country?

## ANSWER

Minister  of  State  (Independent  Charge)  of  the  Ministry  of  Statistics  and  Programme Implementation; Minister of State (Independent Charge) of the Ministry of Planning and Minister of State in the Ministry of Corporate Affairs.

(Rao Inderjit Singh)

- (a): As per the information provided by the Department of Financial Services, the total number  of  cooperative  banks  in  the  country  is  1,886,  which  includes  1,500  Urban Cooperative banks and 386 Rural Co-operative Banks (34 State Co-operative Banks and 352 District Central Co-operative Banks) as on June 14, 2023.
- (b) to (d): The Department of Financial Services has informed that the total number of frauds as reported by the cooperative banks during the last 5 years is given below:

| Financial Year   | Number of frauds   | Amount Involved (in ₹ crore)   |
|------------------|--------------------|--------------------------------|
| 2018-19          | 1,285              | 703.75                         |
| 2019-20          | 719                | 6,839.18                       |
| 2020-21          | 438                | 1,985.79                       |
| 2021-22          | 729                | 536.59                         |
| 2022-23          | 964                | 791.4                          |
| Total            | 4,135              | 10,856.7                       |

Source: RBI and NABARD

All cooperative banks are required to comply with the guidelines issued by the Reserve Bank of India (RBI) from time to time. Compliance to RBI guidelines issued to banks is examined on sample basis during the Supervisory Assessment of the banks and any noncompliance observed is taken up with the banks for rectification apart from initiating supervisory/ enforcement action against the bank, as deemed fit. Some  of  the  policy  initiatives  taken  up  for  maintaining  the  trust  of  the  people  in

## cooperative banks are as under:

- The Banking Regulation Act, 1949 has been amended to provide additional powers to RBI for more effective regulation of cooperative banks.
- RBI  issues  instructions,  circulars,  guidelines  and  notifications  to  cooperative banks under the provisions of the Banking Regulation Act, 1949 [As Applicable to Cooperative Societies (AACS)].
- Guidelines have been issued to cooperative banks on various matters related to capital  adequacy,  income  recognition  and  provisioning  norms,  investments, maintenance of deposits, branch expansion, customer service etc.
- State Cooperative Banks (StCBs) / District Central Cooperative Banks (DCCBs) are being  periodically  inspected  by  NABARD  under  provisions  of  the  Banking Regulation  Act,  1949  to  ensure  that  the  banks  are  complying  with  the  extant guidelines/instructions/norms.
- Urban Cooperative Banks (UCBs) are being periodically inspected by RBI under provisions  of  the  Banking  Regulation  Act,  1949  to  ensure  that  the  banks  are complying with the extant guidelines/instructions/norms.
- Further, with a view to providing a greater measure of protection to depositors in banks, Deposit Insurance and Credit Guarantee Corporation (DICGC) raised the limit of insurance cover for depositors in insured banks from the earlier level of ₹1 lakh to ₹5 lakh per depositor with effect from 04.02.2020.
- ………