Kolkata, Sep 12 (IANS): The BJP-led West Bengal government has initiated a series of reforms in the credit management system of cooperative banks across the state to address the longstanding problem of bad loans and recover dues from wilful defaulters.
State Cooperation Minister Ashok Kirtaniya has personally reviewed the financial health of several cooperative banks and directed departmental officials to prepare a comprehensive strategy aimed at strengthening credit discipline and improving loan recovery mechanisms.
The Minister has directed the departmental bureaucrats to frame a blueprint for a comprehensive strategy to address the chronic issue of wilful defaulters.
According to sources in the cooperative department, the proposed blueprint for urban cooperative banks will focus on three key areas. The first is the introduction of a robust due diligence mechanism to properly assess the creditworthiness of loan applicants and identify potential risks before loans are sanctioned.
The second component involves identifying wilful defaulters and initiating recovery proceedings, including the attachment of properties where necessary. The third seeks to fix accountability for lapses in loan sanctioning and disbursal, with action proposed against credit officers found to have deliberately ignored borrowers’ lack of creditworthiness.
Minister Ashok Kirtaniya said property attachment proceedings would be carried out irrespective of the political affiliations of defaulters. He also warned that responsibility for unrecovered loans would be examined and that, if required, recoveries could be made from the pensions of retired officials or the salaries of serving officers found responsible for irregularities.
“If the money is not recovered, the responsibility of the credit officers concerned will also be investigated. If necessary, the money may be deducted from the pension of retired officers and the salaries of working officers,” the Minister said.
Department officials alleged that during the previous Trinamool Congress regime, due diligence norms in cooperative banks were often ignored, with loan sanctions influenced by recommendations from local ruling party leaders. They claimed that while some credit officers were complicit, many also faced pressure to approve loans without adequate scrutiny.
The proposed reforms are expected to strengthen financial discipline in cooperative banks, curb the accumulation of bad loans, and improve accountability in the credit approval process.
