India, Nov. 8 -- Amid shrinking fixed deposits in cooperative banks, the Maharashtra State Cooperative Bank (MSCB)-the state's apex cooperative bank-has written to the Reserve Bank of India (RBI), alleging that private lenders are using CSR funds to offer local self-government bodies inducements to attract fixed deposits.

These allegedly unethical banking practices, which have created an "uneven playing field", have been flagged in a letter written by MSC Bank administrator Vidyadhar Anaskar, to the RBI governor on November 2. Anaskar has also sought an independent investigation into the matter.

In his letter, Anaskar has alleged that some private sector banks are using their CSR funds to gift zilla parishads, municipal corporations and...