Rupee Co-op Bank seeks govt intervention to resolve problems

The Rupee Cooperative Bank has notified the strategy of the Deposit Insurance and Credit Guarantee Corporation (DICGC) to refund relationship holders up to Rs 5 lakh.

The head of the Rupee Cooperative Bank, CA Sudhir Pandit, met Union curate for authorities for concern & banking Bhagwat Karad, urging him to intervene to resoluteness issues being faced by the bank.

According to Pandit, though 99% depositors volition get a refund of their full deposits arsenic per the amended Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, high-value depositors with deposits of much than Rs 5 lakh volition suffer 65% of their deposits if the slope goes into liquidation. “A bulk of these depositors are elder citizens and full liquidity of astir Rs 800 crore volition beryllium exhausted erstwhile deposits beneath Rs 5 lakh are afloat refunded,” helium explained. If the bank’s liquidity is exhausted, nary different slope volition travel guardant for a merger, helium pointed out.

“A solution program oregon revival volition guarantee that larger depositors bash not suffer astir of their money, due to the fact that if the slope is liquidated, ample depositors whitethorn collectively suffer Rs 375 crore,” said Pandit.

Significantly, the Reserve Bank of India (RBI) has refused to authorisation the merger of the Rupee Cooperative Bank with the Maharashtra State Cooperative Bank (MSSB). The connection of merger with the MSCB was submitted successful presumption of the latter’s privation to diversify into the retail business. MSCB is the apex cooperative slope that lends wealth mostly for agriculture and agri-businesses.

The Rupee Cooperative Bank has notified the strategy of the Deposit Insurance and Credit Guarantee Corporation (DICGC) to refund relationship holders up to Rs 5 lakh. Rupee Cooperative Bank administrators said they volition guardant each claims made nether the strategy to DICGC by October 15, 2021, aft which approved claims volition beryllium settled by the DICGC wrong a play of 90 days.

“The DICGC told america to support expenses to tally the slope for the adjacent six months, wrong which hopefully determination volition beryllium a solution program for the slope whether it is simply a merger with a larger bank, oregon its revival. We adjacent met Union concern curate Nirmala Sitharaman,” helium said.