Mamata Banerjee wrote to Prime Minister Narendra Modi on Monday, urging him to withdraw the recent ordinance that entrusted the Reserve bank of India with powers to suspend the board of directors of urban and multi-state cooperative banks.

The Bengal chief minister said the decision was “unilateral” and against the principle of “co-operative federalism”.

“I would like to mention that ‘Co-operative Societies’ is in the State List in the Seventh Schedule of the Constitution and the state government is empowered under the Constitution of India to deal with all matters related to Co-operative Societies. I am sure you will kindly agree this unilateral action on the part of Central Government goes against the spirit of co-operative federalism,” wrote the chief minister.

Sources at Nabanna said Mamata felt the Centre was encroaching on the jurisdiction of the state as the power of suspending the board of directors was so far exercised by the registrar of co-operative societies of the state.

“Now, with the promulgation of the Ordinance, this power has been given to the reserve Bank of India, which will exercise the power in consultation with the state governments,” Mamata wrote.“Therefore, this ordinance is a clear infringement on the powers of the state government with regards to superintendence and control of the Urban Co-operative Banks.”

The Nabanna sources have said the ordinance will have huge implications in Bengal as a large number of urban cooperative banks play an important role in the state’s economy because of limited presence of scheduled commercial banks in several districts.

The state has a total of 51 urban cooperative banks with 69 branches. Most of these banks play an important role in districts like Burdwan, Hooghly, Howrah, North 24-Parganas, South 24-Parganas, Nadia, East Midnapore, West Midnapore and Birbhum.

The cooperative banks have been used as a tool to control the rural economy by ruling parties since when the Left Front was in power as thousands of farmers and small traders were dependent on these banks for loans. “Powerful ruling party leaders are running the show at the banks. No state government would like to lose control of the banks,” said a senior official.

A senior official at Nabanna said as no urban cooperative bank had faltered over the past nine years in Bengal, the chief minister’s opposition to the ordinance was justified. “She believes politicians are directly accountable to people. So, they are bound to manage banks properly if they are at the helm,” said the official.

Sundarbans plea

Mamata Banerjee wrote to Rajiv Kumar, the vice-chairman of Niti Aayog, urging him to prepare a master-plan for the Sundarbans as the delta with 50 lakh population was facing multiple challenges, including frequent cyclones, leading to regular breaches in the embankments.

The decision to request the Niti Aayog for preparing the master-plan had been adopted at an all-party meeting convened by the chief minister last week.

“We have sent a letter to Niti Aayog urging it to prepare a master-plan for the Sundarbans. The decision was taken at the all-party meeting,” Mamata said at Nabanna on Tuesday.

Sources said the state government was eyeing to secure funds from the Centre to erect concrete embankments in the vulnerable areas so that regular trouble of the residents of the areas could be solved.

“The project to erect concrete embankments with the central funds soon after the cyclone Aila saved many lives during the Amphan as the embankments were not breached. The state needs central funds to erect similar embankments in vulnerable areas,” said an official, adding that planting of mangrove in large parts of the delta was also required.