West Bengal chief minister Mamata Banerjee on Tuesday expressed dissatisfaction with the Centre’s decision to transfer the supervisory role of state cooperative banks to the Reserve Bank of India, saying it was contrary to spirit of cooperative federalism.
The RBI has so far overseen the capital adequacy of banks, risk control and lending standards, while management responsibilities have been entrusted to the registrar of cooperative societies of the state government.
In a letter written to Prime Minister Narendra Modi on Monday, Banerjee said the supervisory role and management responsibilities that had been transferred to the central bank should be restored to the registrar of cooperative societies in West Bengal.
The chief minister said that the Center, by an order of June 26, 2020, transferred the supervisory powers of urban and multi-state cooperative banks to the RBI “unilaterally”.
She said that cooperative societies are a state matter and that such a decision will encroach on the powers of the government concerned.