There is no respite for the Pune based Rupee Co-op Bank as the Reserve Bank of India has again extended the Directions to it for a further period of six months from November 22, 2014 to May 21, 2015. The bank was under directions since February 22, 2013.
Close to twenty months after the Reserve Bank of India (RBI) suspended the Board of Directors of the Rupee Cooperative Bank and imposed strict regulations on it, plans to merge it with another bank have not made much progress.
A proposal to merge the bank with Saraswat Bank has yet not fructified while the move to merge it with Allahabad Bank is stuck pending a due diligence report.
The cooperative bank posted a cumulative loss of Rs 613 crores for financial year 2013-14. Due to spiraling non-performing assets (NPA), the RBI had put the bank under administrators last year.
RBI put a moratorium on withdrawal of money from the bank, which led to consternation among its 6 lakh customers in 36 branches. Director Sugar Commissionerate Sanjay Kumar Bhosale and chairman Vidya Sahakari Bank Vidyadhar Anaskar had been appointed administrators of the cooperative bank.
Earlier in his meeting with the RBI Governor Raghu Rajan Ram NAFCUB President Mukund Abhyankar had told “If Rupee Co-operative Bank is de-licensed, the entire UCB sector will face ‘Tsunami’ and many other small & medium UCBs may have to face a run of depositors”.
Special permission for withdrawal of their deposit, at least, for senior citizens depositors should be granted.
UCBs after UCBs ave NPAs mounting beyond repairs….and RBI in its inimitable and classic style will apply brakes with some crocodile tears shed in the process – linger the “closure” for at least 3 to 4 years, let the Directors and the defaulters to go scott-free, then find a “couched” solution of an half-cooked, one-sided so-called “merger” with a supposedly stronger bank with terms mostly in favour of the Merger Bank at the cost of the poor, helpless and hapless depositors who will be left in lurch by making the Merger bank declare all NPAs of the collapsed bank as “zero” = Where, then is RBI the “protector” of Depositors? They (RBI) are part and parcel of the cunning, so-called “bigger Banks” who are made to benefit immensely by these “murky merger deals” = We have seen this over the years of all co-operative banks = the recent being that of the shoddy and half-baked Merger deal meted out to a well-run but collapsed by Politicians = SOUTH INDIAN CO-OPERATIVE BANK, Matunga, Mumbai, where senior citizens numbering about 4000 are yet to get justice from RBI and Saraswat Bank as they were unwittingly made to settle for only 65% of their hard-earned life’s savings and for the balance 35% , the poor oldies are still fighting a lost battle at all fronts with no help or support coming forth either from RBI or the Govt.come to the rescue of SICBL’s sr. citizens issue for settlement of their legitimate 35% balance dues?? The question is why co-operative Banks, mostly of the Politicians, by the Politicians, and for the Politicians be encouraged by RBI, to see them crumble one after another = and why this dual control on Banks by RBI and Dept. of Co-operatives? ANYBODY LISTENING???????
I am sure at long last RBI will extricate that bank and its depositors. It is not after all South Indian Co-op Bank!!!!!!!
It should be merged with Allahabad Bank to receive entire money of depositors
Can the RBI is in the postion to revive the depositers money being stuck for more than 20mths.
the Rupee bank does not have any concrete answer when asked……….
Or our hard earned money will be writen OFF..