The Visakhapatnam Cooperative Bank (VCB) Limited Chairman Chalasani Raghavendra Rao has alleged that political interference is increasing in the functioning of cooperative banks, which is leading to the disintegration of the cooperative sector.
Addressing a media conference here on Tuesday, Mr. Raghavendra Rao said that in the name of reforms, the Centre was amending the Banking Regulation Act and imposing several restrictions, to the detriment of shareholders and depositors of cooperative urban banks. Visakhapatnam Cooperative Bank was established in 1916, and the cooperative movement and several other cooperative urban banks were launched much before the RBI came into existence. He said that the bank was taking legal recourse against the amendments made to the Banking Regulation Act.
Mr. Raghavendra Rao said that VCB has emerged as the largest cooperative bank in south India with a share capital of ₹272 crore and 92,200 shareholders in the 2021-22 fiscal.
