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Now, curbs on Karnataka co-operative bank. Another PMC-like crisis unfolding?

The Karnataka bank situation reminds of the Punjab and Maharashtra Co-operative (PMC) bank crisis of 2019, when it was revealed that the PMC bank defaulted on loans to the tune of Rs. 6,500 crore.

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Karnataka Co-operative bank

The Reserve Bank of India (RBI) has imposed curbs on a co-operative bank in Karnataka, restricting the withdrawal limit to Rs 35,000. The central bank also restrained Sri Gururaghavendra Sahakara Bank Niyamitha (SGRSBN) bank in Bengaluru from granting or renewing loans, accepting deposits or making investments for a period of six months.

The notification came on January 10.

However, the bank’s license is not cancelled and it will continue to do business with restrictions.

Worried depositors rushed to the bank to hold talks with the management. A meeting is scheduled for January 19, in view of the issue.

The situation was unexpected, considering the fact that SGRSBN bank received the best NPA management award in 2018 from the National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB).

The bank’s chairman K Ramakrishna has assured that the depositors’ money is “cent percent safe” with the bank. He blamed the 62 loans that locked up Rs 300 crore of deposit for the present situation.

BJP’s south Bengaluru MP Tejasvi Surya said that the customers need not panic, and that the finance minister has been informed about the matter.

Surya in his statement said that FM Nirmala Sitharaman has assured him that “the government will do everything in its capacity to protect the interests of the depositors and the long term interests of the bank. The statement added that Surya spoke to Sitharaman three times on January 13 and got reassurance from the minister that the interests of investors will be safeguarded.

The scenario reminds of the Punjab and Maharashtra Co-operative (PMC) bank crisis of 2019, when it was revealed that the PMC bank defaulted on loans to the tune of Rs. 6,500 crore.

On September 24, 2019, the RBI restrained the bank from doing any business for six months, while also capping the withdrawal limit to Rs 1,000, and later to 25,000.

It has to be noted that in 2013, an International Labour Orgranisation (ILO) report said that co-operative banks performed better than its competitors during the 2007-08 financial crisis.

Issue of dual regulation

Some experts attribute the current problems with the co-operative banks to dual regulation. These banks are regulated under both banking and co-operative legislation, by the RBI and the Registrar of Co-operative Societies (RCS) respectively.

The RCS takes care of administrative issues and controls the management elections.

Therefore, although the said banks came under the regulation of the RBI partially, when it came to bank management, the respective state governments had higher control.

Bringing co-operative banks under one regulatory mechanism might be a solution to the crisis, some believe.

India News

Union Minister Smriti Irani questions Rahul Gandhi’s love for Indian democracy over his boycott of the new Parliament inauguration

Irani questioned what kind of love it that massacred Sikhs(referring to the 1984-Anti Sikh riots)?

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Union Minister Smriti Irani questions Rahul Gandhi’s love for Indian democracy over his boycott of the new Parliament inauguration

Union Minister Smriti Irani tore apart Rahul Gandhi’s Mohabbat Ki Dukaan campaign, questioning his love for Indian democracy and the people of India.

Irani questioned what kind of love it that massacred Sikhs(referring to the 1984-Anti-Sikh riots)? She questioned, what kind of love was that insulted the Sengol(the golden stick, which was placed in the new Parliament by Prime Minister Narendra Modi)? She said she wanted to ask him about what kind of love was it that boycotted the inauguration of the new Parliament? Irani asked him to tell her what kind of love was it which was to be silent while the film The Kerala Story was released.

She said she could not understand what kind of love is it that shook hands and hugged those people who curse India or the concept of India.

Irani adding to her attack, said, Rahul Gandhi is only defaming India outside its national boundaries. During the press conference, she listed the achievements of the Modi-ruled Centre government in the last nine years.

She said, women are more protected today and cited the success of government programs like Beti Padhao and Beti Bachao. She hailed the government for its efforts of holistic development, talking about the government scheme of Sabka Saath and Sabka Vikas.

The Minister congratulated the people of India on the inauguration of the new parliament building. She stated it was the priority of the government to ensure that every class is assured that financial allocation is done for any class or community.

She said the figures themselves told the truth. She said that the Congress party, in its hunger for power, is using external forces which are hurting the Indian democracy.  

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India News

Fire at KGMU Lucknow’s under-construction hospital complex | Watch video

Lucknow has been in the news since yesterday over the shoot-out that took place at a Lucknow Court complex. In the shoot-out, gangster Mukhtar Ansari’s close associate Sanjeev Maheshwari alias Jeeva was shot dead.

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KGMU Lucknow

A massive fire broke out at an under construction complex of the King George Medical University(KGMU) hospital in Lucknow, Uttar Pradesh on Thursday.

The building which was ablaze, is meant to house the cardiology department.

As soon as the fire broke out, fire-fighting teams rushed to the spot. While, no casualties are being reported from the accident, the reason behind the ablaze is not yet ascertained.

Lucknow District Magistrate Suryapal Gangwar confirmed that there were no casualties as it was an under-construction facility.

KGMU is one of the eminent medical universities in India. It was set up in 1906, the idea of which was floated back in 1870 by the then Maharaja of Vizianagaram. The idea was put on hold due to lack of funds but later in 1905, George V inspired the idea of setting up the college.

Lucknow has been in the news since yesterday over the shoot-out that took place at a Lucknow Court complex. In the shoot-out, gangster Mukhtar Ansari’s close associate Sanjeev Maheshwari alias Jeeva was shot dead.

A man dressed as a lawyer entered the court complex and fired six rounds. In the incident, a 7-8 –year-old girl and a policeman were injured.

The accused has been identified as Vijay Yadav, a resident of UP’s Jaunpur district.

Earlier this morning, Uttar Pradesh CM Yogi Adityanath met with the injured girl to enquire about her well-being.  

The firing has yet again, raised questions on the law and order situation in UP as Jeeva was killed in the police custody.

The law and order of the state has been in question by the opposition parties since May, after the slain gangster-politician Atiq Ahmed and his brother Ashraf Ahmed were gunned down in a police custody inside a hospital complex in Prayagraj, while being taken for a medical examination.

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Congress urges External Affairs Minister Jaishankar to take up Indira Gandhi assassination float with Canada

When the Foreign Minister was asked at a press conference, Jaishankar said, there was an issue about space which is given to extremists, separatists, and people who advocate violence.

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Congress urges External Affairs Minister Jaishankar to take up Indira Gandhi assassination float with Canada

The Congress on Thursday urged External Affairs Minister S Jaishankar to take up strongly with the Canadian authorities, a float depicting the assassination of former Prime Minister Indira Gandhi in a parade in Brampton, Canada.

When the Foreign Minister was asked at a press conference, Jaishankar said, there was an issue about space that is given to extremists, separatists, and people who advocate violence.

Jaishankar said he failed to understand why someone would do such a thing. He cited it as a clear case of vote bank politics. Condemning the incident, he said this was a clear issue of providing space to separatists, extremists, and to people who advocate violence. He further added it is not good for Canada and its relationship with India.    

The Canadian High Commissioner of India Cameron Mackay said he was shocked by the news of the event that celebrated the assassination of Indira Gandhi in his country. He further added, there is no place for hate or violence or act of glorification of violence in Canada, and he strongly condemned these activities.

Congress leader Milind Deora shared the video on Twitter, which showed a float depicting Gandhi’s assassination in a recent parade held in Brampton, Canada. He wrote, as an Indian, he was shocked seeing the video, the 5-km long parade portraying Gandhi’s killing.

Shashi Tharoor supported Deora and said he was completely right and such activities should be condemned with no politics involved.

Twitter users slamming the incident wrote it to be horrifying and painful. These things happening under the leadership of Justin Trudeau are shameful. A user said this was the force of hatred against which Rahul Gandhi has to fight. Another said, this to be really sad and the BJP government should take it up with the Canadian government.

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