The Reserve Bank of India (RBI) has revoked the license of another major co-operative bank in Maharashtra. The RBI has taken major action against the Karnala Nagari Sahakari Bank, a big name in the Raigad, Panvel belt, which is rife with corruption. Karnala Bank is not in a position to refund customers.
The ED's probe had revealed that Vivek Patil, a leader of the Shetkari Kamgar Paksha and a former MLA, was involved in the multi-crore scam of Karnala Bank. He had sanctioned the loan on a fake account and transferred the amount to his own organization's account. Many leaders, including him, have used the fund to raise hundreds of crores. The ED had arrested Vivek Patil in June in this case. About Rs 529 crore scam took place in Karnala Bank. In 2018, the RBI had noticed irregularities in the bank's operations. The Reserve Bank appointed an officer to investigate. The inquiry into the Karnala Bank transaction had yielded shocking information.
Karnala Bank's license has been revoked by RBI on August 9. In such a scenario, allowing the bank to continue working would have a different effect, it said.
The Commissioner of Co-operation and Registrar of Co-operative Societies, Maharashtra have been directed to close the bank and appoint an officer. The full amount will be refunded to 95 per cent of the account holders under the Digit Insurance and Credit Guarantee Corporation Act (DICGC) through documents submitted by the RBI while canceling the license. The bank has about 60,000 account holders and depositors.