Kazi Zahidul Hasan :
The Anti-Corruption Commission (ACC) has asked the central bank to take ‘lawful action’ against the Dhaka Mercantile Co-operative Society Limited (DMCSL) for its illegal banking activities.
The Commission made the recommendation in a recent letter to Bangladesh Bank (BB) Governor Dr Fazle Kabir.
Prior to this, an ACC investigation team found evidence of illegal banking activities by the DMCSL. It launched the probe after receiving complaints from various quarters.
The DMCSL got registration from Cooperative Department in 1973 under the “Bengal Cooperative Society Act 1940. The Society is not authorized to run the banking activities, as it did not register itself as bank or financial institution under the Bank Company Act 1991 or taken license from the BB.
The Department of Cooperatives earlier directed the Society not to use the word ‘bank’ with its name. But it did not pay heed to its order and continues to run illegal banking activities violating rules. In this context, the central bank has been asked to take necessary action against the cooperative society,” according to the ACC letter.
“The cooperative is not authorized to run the banking activities, as it has not taken license from the central bank. It has been taking deposits and giving loans illegally using the word ‘bank’ in its name,” BB spokesperson Shubhankar Saha told The New Nation Friday.
The cooperative has collected deposits of Tk 981 crore and disbursed loans worth Tk 1,079 crore as of December 31 last year. It attracts depositors by offering hefty returns.
“It can’t run banking activities being registered as cooperative society. BB will take stern action against it for the illegal business,” he added.
The cooperative’s Chairman Abu Zafar Chowdhury and Managing Director Shamsun Nahar could not be reached for comments.
DMCSL have 1.5 lakh members enrolled in its 120 branches and sub-branches opened across the country.
It is a specialised development cooperative financial institution, offering retail and commercial banking under a cooperative theme. It provides collateral-free credit to businesses, according to the website of the cooperative.
Officials said at least six cooperative societies are conducting banking activities illegally being registered as cooperative society in the country. They are the Dhaka Mercantile Co-operative Society (Bank) Ltd, the Dhaka Urban Cooperative Bank Ltd, Adarsha Samobay Bank Ltd, Small Traders Cooperative (Bank) Society Ltd, Merchant Cooperative Bank Ltd and Aziz Cooperative Commerce and Finance Credit Society Ltd (former ACCF Bank Ltd).
The Anti-Corruption Commission (ACC) has asked the central bank to take ‘lawful action’ against the Dhaka Mercantile Co-operative Society Limited (DMCSL) for its illegal banking activities.
The Commission made the recommendation in a recent letter to Bangladesh Bank (BB) Governor Dr Fazle Kabir.
Prior to this, an ACC investigation team found evidence of illegal banking activities by the DMCSL. It launched the probe after receiving complaints from various quarters.
The DMCSL got registration from Cooperative Department in 1973 under the “Bengal Cooperative Society Act 1940. The Society is not authorized to run the banking activities, as it did not register itself as bank or financial institution under the Bank Company Act 1991 or taken license from the BB.
The Department of Cooperatives earlier directed the Society not to use the word ‘bank’ with its name. But it did not pay heed to its order and continues to run illegal banking activities violating rules. In this context, the central bank has been asked to take necessary action against the cooperative society,” according to the ACC letter.
“The cooperative is not authorized to run the banking activities, as it has not taken license from the central bank. It has been taking deposits and giving loans illegally using the word ‘bank’ in its name,” BB spokesperson Shubhankar Saha told The New Nation Friday.
The cooperative has collected deposits of Tk 981 crore and disbursed loans worth Tk 1,079 crore as of December 31 last year. It attracts depositors by offering hefty returns.
“It can’t run banking activities being registered as cooperative society. BB will take stern action against it for the illegal business,” he added.
The cooperative’s Chairman Abu Zafar Chowdhury and Managing Director Shamsun Nahar could not be reached for comments.
DMCSL have 1.5 lakh members enrolled in its 120 branches and sub-branches opened across the country.
It is a specialised development cooperative financial institution, offering retail and commercial banking under a cooperative theme. It provides collateral-free credit to businesses, according to the website of the cooperative.
Officials said at least six cooperative societies are conducting banking activities illegally being registered as cooperative society in the country. They are the Dhaka Mercantile Co-operative Society (Bank) Ltd, the Dhaka Urban Cooperative Bank Ltd, Adarsha Samobay Bank Ltd, Small Traders Cooperative (Bank) Society Ltd, Merchant Cooperative Bank Ltd and Aziz Cooperative Commerce and Finance Credit Society Ltd (former ACCF Bank Ltd).
