West Bengal implements cooperative bank reforms to tackle bad loans

The West Bengal government has launched reforms in the credit management systems of state cooperative banks to address bad loans and recover dues from wilful defaulters. State Cooperation Minister Ashok Kirtaniya has directed officials to develop a comprehensive strategy to strengthen credit discipline.

The proposed blueprint for urban cooperative banks focuses on three primary areas: implementing robust due diligence to assess applicant creditworthiness, initiating recovery proceedings such as property attachment for defaulters, and establishing accountability for loan sanctioning lapses.

Minister Kirtaniya stated that property attachments would proceed regardless of a defaulter's political affiliation. He further noted that if loans remain unrecovered, investigations will examine the responsibility of credit officers, potentially leading to deductions from the salaries of serving officers or the pensions of retired officials.