West Bengal Chief Minister Mamata Banerjee on Tuesday expressed dissatisfaction over the Centre’s transfer to switch the supervisory function of state cooperative banks to the Reserve Bank of India, contending that it was towards the spirit of cooperative federalism.
The RBI was to this point overseeing the banks’ capital adequacy, danger management and lending norms, whereas administration obligations had been entrusted to the Registrar of Cooperative Societies of the state authorities.
In a letter written to Prime Minister Narendra Modi on Monday, Ms Banerjee stated the supervisory function and administration obligations which were transferred to the central financial institution needs to be restored with the Registrar of Cooperative Societies of West Bengal.
The chief minister stated the Centre, by way of an ordinance on June 26, 2020, transferred the powers of supervision of city and multi-state cooperative banks to the RBI in a “unilateral” method.
She stated that cooperative societies is a state topic and such a transfer will infringe upon the powers of the federal government involved.