Thiruvananthapuram: Cooperation Minister V N Vasavan said in the Assembly that the government was in the process of establishing audit monitoring and information systems to make the public details of the cooperative community audit.
C-DIT has been asked to develop this system and they are in process, he added.
The government has decided to strengthen the wealth of the cooperative department’s vigilance and also to bring the necessary changes in the Cooperative Act to end corruption, Vasavan said.
The government is in the process of appointing an officer from an Indian audit service and account at the Cooperative Audit Director Post.
The minister said that all of these steps were taken after the Karuvannur bank scam.
A three member committee has been formed to suggest amendments in the Cooperative Act to curb irregularities.
In Fraud Bank Ar Nagar, it has been detected that KYC guidelines are not followed when receiving savings.
Some people who have customers ID do not have membership in the bank.
Some customer IDs are given based on one name and through the 2.66 RS Crore, it is disbursed as a loan.
Some of their employees and relatives also have a number of deposits at the bank.
Rules and regulations are not followed during loan disbursement.
The minister said that it has been noted that in some cases when there is a default in loan payments, banks increase interest rates and allow the magics to update their loans.