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All co-operative banks should not be held guilty, after scam
PRESS TRUST OF INDIA
Mumbai, April 3: The National Federation of Urban Cooperative Banks & Credit Societies on Tuesday said that aberrations in one or two cooperative banks are no criterion to judge them all."Those commercial banks who are trying to take advantage of the situation are well aware that urban cooperative banks have been, in fact, helping their resource base by keeping deposits with them," the federation said in a public announcement.Maharashtra and Gujarat have over 600 and 350 urban banks respectively, it said.Meanwhile, the Reserve Bank of India has, in the wake of the Bank of India's Rs 137 crore pay order scam, directed all commercial banks to report losses expected from dealings with cooperative banks.The federation hoped that depositors and investors of scheduled and other urban banks would not be influenced by market rumours and would continue to have full faith in their respective banks.The announcement follows the involvement of the Ahmedabad-based Madhavpura Mercantile Cooperative Bank (MMCB) in the pay order scam. The National Federation said, "It is a fact that one scheduled urban bank in Ahmedabad has acted in a manner which has harmed depositors and some banks dealing with it." Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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