BJP MLC-Led Cooperative Bank To Handle Payment Of Teachers' Salaries

The state government issued a directive on Tuesday instructing government and government-aided schools in the city to open salary accounts for their teaching and non-teaching staff in the Mumbai District Cooperative Bank, led by BJP MLC Praveen Darekar, a close associate of Deputy Chief Minister Devendra Fadnavis.

Presently, over 1,500 schools with around 21,000 employees receive their salaries through Union Bank of India, a nationalised bank. However, the recent order seeks to change this arrangement. The order states, "Government decision regarding the payment of salary to teaching and non-teaching staff through Union Bank of India has been revoked, and approval has been given to open a salary account in Mumbai Bank." Teachers' organisations have opposed the order and are considering protests against the decision.

The Mumbai District Cooperative Bank, also known as Mumbai Bank, faced controversy two years ago over questions regarding Darekar's election to the bank's board. Although he initially stepped back, Darekar resumed the position as chairman of the bank after a year.

In 2018, due to teachers' protests about delayed salaries, the government shifted all salary accounts to the nationalised Union Bank of India. The annual salaries for teaching and non-teaching staff in Mumbai schools amount to approximately Rs 110 crore.

In November, the government altered the eligibility criteria for cooperative banks to conduct banking business with the government. On 1 December, the finance department amended the list of banks eligible to hold government and semi-government employees' salary accounts, adding Mumbai Bank to the list. This change raised concerns about favoring Mumbai Bank.

Teachers and their unions strongly oppose the new government order, citing a previous Supreme Court decision. J M Abhyankar, president of the Maharashtra State Shikshak Sena, stated that going back to Mumbai Bank is a violation of the Supreme Court order. The union has warned of agitation if the government does not cancel the order.

Praveen Darekar defended the government's decision, emphasising the bank's financial capacity. He explained that the government included Mumbai Bank in the eligible banks based on its financial capacity and reassured that the bank could provide all the services offered by nationalised banks. Teachers' unions plan to decide on further action on 9 December.