R. Mathan Kumar & Ch. Shoumik Chowdary, Bennett University
ABSTRACT
Indian rural and urban cooperative banks are now crucial to the development of the country's financial inclusion. Since their founding, they have made numerous historical advances and contributed to the empowerment and security of Indians by providing convenient financial services. The Co- operative Banks' journey has not been easy; they have encountered difficulties and administrative hiccups at numerous levels. In light of its rapidly deteriorating financial status, the current study aims to assess the challenge that the Punjab Maharashtra Cooperative Bank experienced. This made it necessary for the Reserve Bank of India (RBI) and the Indian government to act right away in order to safeguard depositor interests and uphold public confidence in Indian banking through regulations.
This paper attempts to examine the Punjab & Maharashtra Co-operative Bank’s financial failure case with a focus on the risk involved as well as the contributing factors to the failure. The regulatory response is also examined in the paper.
Keywords: Financial inclusion, cooperative bank, Non-Performing assets & ethics.
