MD rubbishes ‘SBS underRBI purview’ reports

SUMMIT REPORT

Gangtok, 22 Feb: Following a news report in a national daily that the State Bank of Sikkim has been

brought under the purview of the Reserve Bank of India, SBS today issued a press release stating that the report “has no basis at all”. Business Standard published a news report on 21 Feb datelined New

Delhi and titled “State Bank of Sikkim under RBI’s purview” wherein it said that the bank had been brought under the RBI’s regulatory purview and that the bank’s ownership structure would not change but would be regulated at par with other banks. The news report also quoted Sachin Chaturvedi, a member of the RBI’s board of governors and on the eastern local board of RBI, as saying that it would expand the role of State Bank of Sikkim. The report further said that SBS could be modelled on the pattern of J&K Bank. On the other hand, SBS Managing Director, P Wangdi, has said in the press release that the Government of Sikkim and SBS have received no such communication from the RBI or from any other source. “News item seems to be the handy work of some rumour monger whose only intention could be to discredit the Government of Sikkim and the State Bank of Sikkim,” the release states. SBS is preparing to file an FIR against the newspaper and its reporter, it further mentions.

The bank was established under the SBS Proclamation of 1968 which is an old law of Sikkim protected under Article 371F of the Constitution. “The Government of Sikkim and the State Bank of Sikkim fully understands the sanctity of the Article 371F of the Constitution of India and old laws of Sikkim and is

fully committed to keep the same protected by all means,” the release further states.