The Hindu : UCBs asked to adopt concurrent audit

Online edition of India's National Newspaper
Wednesday, Apr 30, 2003

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UCBs asked to adopt concurrent audit

By Our Special Correspondent

MUMBAI APRIL 29. In line with the recommendation made by the Joint Parliamentary Committee (JPC) which enquired into the stock market scam, the Reserve Bank of India has decided that Urban Co-operative Banks (UCBs) would be given a maximum period of six months from the date of the inspection report to remove the irregularities pointed out in the inspection report in all respects, failing which the RBI would invoke the penal provisions.

Announcing the Monetary and Credit Policy for 2003-04, the RBI Governor, Bimal Jalan, said that all UCBs were advised to introduce concurrent audit with immediate effect as per the recommendations of the JPC report. The Governor also said that UCBs should not grant loans and advances (both secured and unsecured) to directors, their relatives and firms and concerns and companies in which they were interested, with immediate effect.

Dr. Jalan, however, clarified that existing advances extended prior to April 29, might be allowed to continue up to the date when they were due. These advances should not be renewed or extended further, Dr. Jalan added.

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