Dehradun, Aug 11: The Reserve Bank of India (RBI) has approved a longstanding proposal to bifurcate Uttar Pradesh State Cooperative Bank and Uttar Pradesh State Gramin Vikas Bank and form Uttaranchal Rajya Sahakari Bank Ltd. A communication to this effect has already been sent to both the governments by the apex bank, official sources said today.

However, Uttar Pradesh, which is at loggerheads with Uttaranchal over the division of assets and liabilities ever since the new hill state came into being on November 9 2000, is seemingly not in a hurry to initiate the bifurcation process, the sources said.
"The RBI has demanded certain formalities like true copies of the resolution passed by the board of directors of both UPSCB and UPSGVB regarding the approval scheme of the bifurcation in terms of assets and liabilities. But no cooperation from Uttar Pradesh is delaying the process of the formation of the new cooperative bank in Uttaranchal.”

"We are not receiving any cooperation from Uttar Pradesh side regarding the formation of new cooperative bank in our state," Uttaranchal cooperative minister Mantri Prasad Naithani admitted.

"From our side, everything is ready, the moment the bifurcation is done, we will set up our own bank," he said.
Significantly, eight out of the nine district cooperative banks in Uttaranchal would finally take over are viable.


Bureau Report