Purvanchal Co-operative Bank located in Lanka of the city.
– Photo : Dialogue
Expansion
The Reserve Bank of India (RBI) has cancelled the license of Purvanchal Co-operative Bank Limited on June 14. Earlier, on the basis of the RBI investigation report last year, a case was registered against former promoter of Purvanchal Co-operative Bank Limited Ram Babu Shandilya, former CEO Vivek Pandey, management committee, auditor M/s Vijay K. Sharma & Company, bank proprietor and related party and firm in the city police station on 30 August 2023. The Co-operative Cell Varanasi is investigating this entire matter.
Purvanchal Co-operative Bank Limited was established in 1989. This bank has its main branch at the district headquarters and branches at Shastri Nagar, Kachhari, Maharajganj, Jangipur, Saidpur, Shaheed Nagar. During the RBI investigation, the officials found serious financial irregularities. Whereas before that RBI had banned deposits and withdrawals at all the branches of Purvanchal Co-operative Bank.
Also, RBI has returned Rs 12 crore 63 lakh to 912 account holders who had deposited less than five lakh in this bank, while the process of returning Rs 22 crore 92 lakh to 1691 account holders is underway. While loans worth Rs 40 crore have been distributed from the bank, the recovery process for which will be initiated after receiving letters from senior departmental officials.
Assistant Commissioner and Assistant Registrar Cooperatives Anshal Kumar said that the Reserve Bank of India has cancelled the license of Purvanchal Co-operative Bank. The fraud case registered in the police station has also been transferred to the Co-operative Cell Varanasi for investigation.