West Bengal Chief Minister Mamata Banerjee on Tuesday expressed dissatisfaction over the Centre’s transfer to switch the supervisory function of state cooperative banks to the Reserve Financial institution of India, contending that it was in opposition to the spirit of cooperative federalism.
The RBI was so far overseeing the banks’ capital adequacy, threat management and lending norms, whereas administration obligations had been entrusted to the Registrar of Cooperative Societies of the state authorities.
In a letter written to Prime Minister Narendra Modi on Monday, Ms Banerjee stated the supervisory function and administration obligations which were transferred to the central financial institution must be restored with the Registrar of Cooperative Societies of West Bengal.
The chief minister stated the Centre, via an ordinance on June 26, 2020, transferred the powers of supervision of city and multi-state cooperative banks to the RBI in a “unilateral” method.
She stated that cooperative societies is a state topic and such a transfer will infringe upon the powers of the federal government involved.