Mumbai:
The Maharashtra
state government is putting up a proposal to completely
eliminate brokers from dealing with cooperative banks.
According to officials, the government will submit the
proposal to the Reserve Bank of India (RBI), the National
Bank for Agriculture and Rural Development (Nabard)
and the Registrar of Cooperative Societies.
State
government officials say they have initiated proceedings towards
the recovery of some of the losses incurred in the scam by
attaching assets of the promoters of the cooperative banks.
"But losses involved are huge sums of money, and most of it
has been swindled away in the equities market. So it may not be
possible to recover the full extent of the funds lost."
The officials add that some of the important recommendations made
by Nabard and submitted in a report to the RBI include
that no individual broker should handle more than 5 per cent of
the business in any one bank. The report also says that all
transactions should be routed through the SGL and the role of
brokers should be limited to the minimum.
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