Rajkot-based Multi-State Scheduled Co-operative Bank, Rajkot Nagarik Sahakari Bank Ltd. is in turmoil with allegations of mismanagement and fraud flung by ex-employees and previous office bearers.
The group alleging wide-scale financial irregularities and fraud have come together under a banner in the name of ” Bank Bachao Sangh” ( Save Bank Union ). The prominent in the group are Chandubha Parmar and Sharad Vora.
The disgruntled group has alleged that a single family in Junagadh has been accorded credit facilities worth Rs. 35 crores. They also alleged that 25 fraudulent incidents have occurred at the Kalbadevi Branch in Mumbai.
The present incumbents have denied all charges vehemently. Mr. Jimmybhai Daxini, Bank’s Chairman said that the Reserve Bank of India has completed all audits and nothing has been found. Jimmybhai daxini was Vice-Chairman of the Bank. He was elevated to the post of Chairman when Mr Shaileshbhai Thakar resigned from chairmanship.
Rajkot Nagarik Sahakari Bank Ltd is operating in the States of Gujarat and Maharashtra.The Bank was established in 1953. Bank was led in the past by stalwarts like Arvindbhai Maniar and guided by big names such as Keshubhai Patel, Vajubhai Vala, Shashikant Mehta, Vasantbhai Khokhani, Pravinbhai Maniyar and Shivlalbhai Vekaria.
The Bank has more than 7.20 lacs deposit accounts with a deposit base of 4,400 crores and 45,000+ establishments/individuals enjoy credit facilities of Rs 2,400 crores.
Recently, the RBI has, by an order dated April 16, 2024, imposed a monetary penalty of ₹43.30 lakh on Rajkot Nagarik Sahakari Bank Ltd, for non-compliance with RBI directions. The bank granted certain loans to firms in which the directors of the bank were interested as directors.
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