Amalorpavannatham committee report states that the MD or CEO may be promoted from the ranks
In the event of non-availability of such an officer with requisite experience, a professional may be recruited from the banking sector or open market by an agency
He or She should satisfy the ‘Fit and Proper’ criteria as prescribed by RBI
But, the RBI, NABARD, Professional Directors of the Apex Cooperative Bank and other cooperators remained as mute spectators when the cooperative spirit is being violated
HYDERABAD, MARCH 21, 2025: The Telangana State Cooperative Apex Bank has blatantly flouted the norms of the Amalorpavannathan committee report, which was even approved in the TGCAB’s Management Committee and General Body meetings, by recruiting an IAS officer as its Managing Director.
The Telangana State Government has appointed Director (Agriculture) B Gopi (the 2016 batch IAS officer) as the interim Managing Director of Telangana State Cooperative Apex Bank on July 2, 2024, after the completion of the tenure of N Muralidhar. As per norms of the Amalorpavannathan committee, which was even accepted by the TGCAB management committee and General body, as per the guidelines of RBI recommendations of a ‘Fit and Proper Criteria’, the committee stated that the Cooperative banks, both State cooperative banks as well as DCCBs, should be ‘managed by the bank’s personnel, with appropriate qualifications and skills…,’ who are recruited transparently and objectively.
The Amalorpavannathan Committee recommendations stated that the MD or CEO may be promoted from the ranks or in the event of non-availability of such an officer with requisite experience, a professional may be recruited from the banking sector or open market by an agency. He should satisfy the ‘Fit and Proper’ criteria as RBI prescribes. In no case should the MD or CEO be posted by the State government or deputed from it. The bank would therefore be managed by banking personnel, with appropriate qualifications and skills.
It is almost nine months an IAS officer has been working as Interim Managing Director of Apex Cooperative Bank, which had accolades and awards from NAFSCOB and NABARD. When there is a blatant violation of the rules by appointing a non-professional as the MD of the Apex Bank, it is surprising to note that neither the RBI, NABARD, nor Professional Directors of the TGCAB are questioning the government as this move is aimed at dilution of the cooperative spirit, the sources said.
Even as the Union Government had constituted the Ministry of Cooperation for the first time and taking measures to drive economic prosperity through the vision of ‘Sahakar Se Samriddhi’ (Prosperity through Cooperation), the Telangana state government is diluting the cause by appointing an IAS officer as MD of TGCAB and flouting all the norms, they added. It is also surprising to note that the newly appointed TGCAB Chairman M Ravinder Rao remained silent over the issue.
