Question : STATUS OF SCHEDULED BANKS IN MADHYA PRADESH

(a) whether the cooperative banks of Madhya Pradesh have been given the status of scheduled banks;

(b)the criteria for providing the status of scheduled banks to the cooperative banks;

(c) the number of applications/proposals pending with the Union Government for providing the status of scheduled banks in Madhya Pradesh; and

(d) the time by which the proposals are likely to be approved ?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S.PALAN1MANICKAM)

(a) and (b): Only Madhya Pradesh State Co-operative Bank Limited, in Madhya Pradesh has been granted the status of Scheduled Bank. In terms of Section 42(6) of the RBI Act, 1934, banks are included in Second Schedule of the RBI Act subject to the following conditions:-

(i) The banks should have a paid up capital and reserves
of an aggregate value of not less than five lakh rupees.
However, as per Government of India Notification only
such of the Primary(Urban) Co-operative Banks which
are licensed and whose demand and time liabilities
are not less than Rs. 250 crores qualify to be treated
as financial institutions for the purpose
of sub-clause
(iii) of clause (a) of sub-section 

(6) of Section 42 of the RBI Act, 1934;

ii) RBI is satisfied that Bank`s affairs are not
being conducted in a mannerdetrimental to the interest
of the depositors; and


(iii) The bank is a State Co-operative Bank or a company
as defined in Section 3 of the Companies Act, 1956(1 of 1956),
or an institution notified by the Central Government
in this behalf or a corporation or a company incorporated
by or under any law in force in any place outside India.

In addition to the statutory provisions, RBI has prescribed
certain, internal guidelines to ensure that only financially
sound banks are included in the Second Schedule of the RBI Act,
1934.