The depositors associated with Mumbai-based City Cooperative Bank are feeling very helpless and requested Prime Minister Narendra Modi as well as Union Finance Minister Nirmala Sitharaman to listen to their plight.
They complained that RBI has misused its power cancelling the license of City Cooperative Bank. They have called for serious action against the management which is involved in misappropriation of funds of the gullible depositors of the bank.
Indian Cooperative received many emails from depositors, who have expressed their disappointment at the cancelling of the bank’s license. They warned that if the RBI did not restore the bank’s license then they would protest.
One of the depositors Jaya D Dhavale wrote, “How the RBI is going to protect the interests of the depositors of the City Coop bank by cancelling its licences and stopping it from doing any banking activities. Will the RBI explain this to depositors and the general public? Will FM, Home Minister or PM look into this matter and help depositors get their hard earned money?, he asked.
Another depositor wrote, “The RBI is working as per its wishes and whims. It allowed PMC bank to be taken over by Unity Small finance bank within no time and without any hesitation. The lobby of PMC bank depositors was very strong and had political connections. The RBI employees’ Credit Society also had an account with PMC and hence the RBI took no time to help PMC come out of trouble” the depositor said.
“I do not understand how the closure of the bank will help to protect the interests of the depositors. Will RBI explain this? We also do not know what action the RBI or Govt. agencies have taken action against the Chairman, Directors, officers responsible for this scam and ultimately duping the depositors on whose money the bank had been doing business for many years. All the culprits should be punished and the Bank be allowed to resume its business”, he added.
In his comment, Paresh Kothare said, “This is absolute high headedness on the part of RBI. They are destructors of deposits rather than protectors. By refusing merger with Cosmos Bank they have in fact denied depositors getting back at least 65 percent of deposits on Day 1 of the merger. Where is logic? Can our FM and PM answer please and save us by rejecting the RBI’s top down approach, he noted.
“Cosmos bank has already conducted their audit hence they found it fit to take over. In spite of their willingness, RBI has not granted them permission to do so. This is partial on their part. Most of the amount due had been recovered by City coop bank. The bank has around 10 branches whose property is worth crores of rupees”, one of the depositors said.
Another said, “The state and central government should look into this and handover the inquiry to a central agency so that facts come out in the open and we ordinary account holders are returned their hard earned money”, he said.
It bears recalling that the bank’s depositors are willing to convert maximum 35 percent of their deposits above Rs 5 lakh into the share capital, in order to protect their 65 percent or more deposits but all hopes are in vain.
Also very important is 70 percent Senior citizen depisitors are there whose PF, gratuity and retirals are stuck up for 6 yrs and they have no means of livelihood.
RBI and givernment must take note of that while taking any actions and while thinking of progressive future policies as they say,also think about the muck of the present in which hapless depositors are mired and suck up. and have solution for that also than just closing banks which dies not require any greatness n can be just done by RBI with its powers.
So Cosmos who are ready for merger is best option to seek and give decision by RBI after delaying for one year to protect atleast partial deposits instead of full.
Also in liquidation 185 cr of 215 cr assets will go to DICGC n bslance left is 30 cr plus fixed assets of around 40 cr which even if given by liquidator to depositors will be a pktry less sum to depositors in frint of 65 percent which can be got thru Cismos merger if not snything more
Depositors of city cooperative bank need to get their money back. We want justice. Let their be enquiry against the management of the bank who are responsible for fraud and misuse of Depositers money and also RBI which could not protect Depositers money.
Prime Minister Finance Minister please look in this matter and give justice to people who voted for you to run this country.
Kothare hi:
Am Dr. Achutha Jois, fellow of IIM, am president of a cooperative bank depositors association. We would like to talk to you to get some information and exchange some information. Can you please send me a WhatsApp message and indicate your convenient time. We will call you. Thanks
Kothare ji:
Am Dr. Achutha Jois, fellow of IIM, am president of a cooperative bank depositors association. We would like to talk to you to get some information and exchange some information. Can you please send me a WhatsApp message and indicate your convenient time. We will call you. Thanks
Dr Jois, thanks for taking heed. I am on X, can u please share your twitter handle for me to connect with you. My email is already shared with Indian cooperative
I am secy of City Coop Depositors association actively involved in this cause for last 6 yrs
Best rgds
That City bank has suffered heavy loss because many fraudulent borrowers had taken loans from City Bank. As per the report of RCS, One property was hypothecated to the bank by five Or more borrowers. The chairman Said in his statement in the AGM that recommendations were received from the senior managers of the bank, because of which the loans were given. If the recommendations were given by the staff, was it not the duty of the Board members to varify the applications by the borrowers, is the main question. For this act of the board members they are liable for a criminal action against them. We have filed a Criminal Writ Petition in Mumbai High Court, and hearing of it is pending. Hope some action will be taken against it. Secondly there are more than 13 %depositors, whose money is blocked in CCB. Normally RBI cancels the licence of a bank , having maximum One to two percent of the Depositors, to receive their money. So it is requested that RBI should reconsider the decision of cancelling the licence of CCB. Thanks.
Dear Sir
RBI has supreme power to issue License to open a Bank. But when it comes to closure of Bank RBI says it is closing in the interest of Depositors. In fact it is in the interest of RBI it is closing fraud prone Co operative banks
This wouldn’t have happened if there is representative of Depositors in the Board of Directors Or an RBI representative in Board of Directors.
1) When a bank is closed how can the depositors interest is protected. It is accepted fact that 20% big depositors hold 80% of total bank deposits. How can 20% depositors be left out for NO FAULT ON THEIR PART.
Let RBI or State Government take stringent action against culprits. RBI is taking action on the innocent Depositors who reposed FAITH NOT ON BANK MANAGEMENT BUT 100% ON RBI LICENSE. They should not be made to suffer for a Financial Crime they were unaware of.This magnitude of Frauds do not happen overnight but it is perpetrated over several years unnoticed by authorities who are supposed to keep a strict Vigil. So the failure is on the part of RBI/Auditirs/Co operative Dept.
2) let Central Government, Finance Ministry, Department of Co operation come together to find out a Comprehensive long term solution.
DICGC is a temporary immediate solution especially for Small Depositors. The present Amendment of DICGC is virtually a Loan which is to be repaid AT THE COST OF BIG DEPOSITORS.
My earnest suggestion is to merge all failed Co operative banks under one NATIONAL CO OPERATIVE BANK.
City co-op bank depositors must get the benefit of amalgamation with prospective banks. Having clarified that, it’s essential to have clarity about the fate of PMCB depositors and shareholders.
PMCB was put under moratorium by RBI on 23rd Sept ’19 (peak periods of COVID-19) with all savings of innocent depositors got struck and many dying either by shock or denial of treatment for want of money (even though they had their life savings in one of RBIs most trusted, PMC bank).
The amalgamation and DICGC payment happened to depositors in the end of Dec.’2021, almost 27 months after the moratorium. That took care of those having total deposits upto 5.0L. only and with loss of interest payment for the lapsed 27 months. For those having deposits beyond 5.0L., the repayment schedule given by RBI & USFB is absolutely pathetic. Firstly it’s with zero interest payment for all subsequent years with only Rs.50K per year of the remaining principal deposit amount.
Many of the remaining depositors will not get their basic amount without any interest even after seven years from the time of the moratorium.
Pl. understand the situation of families having got their savings struck in bank without earning any interest amount and not able to withdraw any amount even for their hospitalisation/treatment, for payment of educational fees, etc.
The shareholders money is written off totally by the PMC-RBI-USF banks.
The depositors have collectively taken up their case with Mumbai High Court to seek justice after not getting any response from the competent authorities both at Central and State levels…and the matter has yet to see the start of legal process in court.
Myself Dr Ravi K B, from Tumkur, Karnataka.
Cooperative Banks has to be taken care by the Finance Minister and the Income tax department.
I am a depositor of Sri Sharada Mahila co-operative bank, Tumkur, which has lost its banking license last year. I had 2 Lakh deposit amount. I still not got back my hard earned money which I invested there.
RBI and DICGC has not taken any action on the Concerned bank Liquidator. I had made a complaint with RBI , Even I wrote a letter to DICGC, RBI AND OF NO USE. EVEN THE REGISTRAR OF COOPERATIVE SOCIETIES , GOVERNMENT OF KARNATAKA DID NOT TAKEN ANY SERIOUS ACTION TO GET BACK MY MONEY. I AM IN A VERY PANIC SITUATION. SO THE PRIME MINISTER AND FINANCE MINISTER HAS TO TAKE SOME SERIOUS ACTION IN REGULATION OF THESE AGENCIES. OTHER WISE THE PEOPLE OF INDIA WILL LOSE TRUST IN THE ENTIRE BANKING SYSTEM OF THE COUNTRY. We the depositors of the failed cooperative banks has to unite together and fight for our rights. WHY THE BANKS SANCTIONED LOANS TO SUCH A FRAUDERS AND THE PROBLEM NEEDS TO BE ADDRESSED by the Chief minister of the respective state. Nowadays lots of cooperative bank has been failing
It may be noted that after amalgamatiom of PMC with UNITY bank depositor’s money Rs 4200 cr is under moritorium with no interest for 5 years 10 month and Rs 2100 cr @ 2.75 % interest for next 5 years.
The depositors under Rs 5.00 were paid from depositor’s money and DICGC.
In totality depositors above Rs 5.0 L who were paid Rs 2450 cr from DICGC is nullified by ad hoc payment, loan payment and on top of this bear loss of Rs 1000 cr minimum
I am convince that RBI gives stepmotherly treatment to co- operative banks. Their supervision is not at par with commercial banks as claimed by them.
It is obseved that frauds in co- operative banks not reduced even after end of dual regulations.
It may be noted that DICGC acts as bridge bank and gives money on loan when bank fails and recover from assets of bank In otherwords depositors above Rs 5.0 L pay for depositors bellow Rs 5.0L
These are main reasons for cancellation of City bank and cosmos bank.
We as co- operative bank depositors have request to all high level authorities of co- operative( includind co- operative ministry) to protect interest of all depositors and not only depositors bellow Rs 5.00 L at the cost of high value depositors if co- operative movement have to sustain.
संचालक मंडळामधील कुणाचचं डिपाॅसिट कसं नाही बुडालं एका संचालीकेनी तर पै अन् पै डिपाॅसिट बॅकेतुन काढून घेतलं व लगेचच बॅक बुडाली म्हणजेच यांना बॅंक बुडणार याची चाहुल लागली होती मग त्यांनी बाकीच्या लोकांना का नाही सावध केलं,आणि संचालक मंडळाने स्वतः ला क्लिन चीट मिळवुन कर्मचाऱ्यांना दोषी ठरवुन त्यांच्या वर केसेस टाकल्या,आणि एवढी मोठी कर्ज मंजूर करण्याचा कोणत्यातरी कर्मचाऱ्याला अधिकार आहे का ?भले तो मॅनेजर असला तरी ,असं सर्व सामान्य लोकांच्या मनात हे येणं स्वाभाविक आहे जे कोणी दोषी आहेत त्यांच्या मालमत्ता जप्त करण्यात आल्या तर आता सर्व ठेविदारांचे पैसे मिळतील बॅकेच्या मालमत्ता विकण्याची देखील काही गरज नाही अवैध मार्गाने मिळविलेले अमाप धन आहे यांच्या जवळ, म्हणून कोणतीही बॅंक बुडाल्यावर प्रथम संचालक मंडळा कडे रिझर्व्ह बँकेने आपली वक्र दृष्टी वळवावी आणि हो रिझर्व्ह बँकेला तर वारंवार बॅका कशा बुडतात किंवा का बुडतात याचा अगदी पक्का अनुभव असतो मग ते इतके गाफील कसे असतात वेळोवेळी ते नजर कसे ठेवत नसतील आणि बँका डब्यात घालण्यामागे भरपुर म्हणजे भरपुरच राजकीय शक्तींचा हात असतो हे सर्व सामान्य लोकांना कळत असते दिसत असते पण पुराव्याअभावी आणि दुसरं बळा अभावी सामान्य माणूस काहिच करु शकत नाही या बॅकेत काय किंवा CKp,Rupi coop बॅकेत काय आपल्या आयुष्यभराच्या कष्टाची परिश्रमाची रक्कम ठेविदारांनी गमावली आहे.बॅका अशा रितीने बुडविणारे दरोडेखोर जे आहेत त्यांना पायबंद, कोण घालणार जरब कोण बसविणार एकही राजकीय पक्ष किंवा राजकीय नेता या बद्दल अवाक्षरही काढत नाही या ठेवीदारांना न्याय मिळवून देण्यासाठी पुढे येत नाहीत ठेविदारांचं नेतृत्व करत नाहीत ही या देशाची फार मोठी शोकांतिका आहेत आता हे लोक का पुढे येत नाहीत तर त्यांचे बहुतेकांचे हात यात अडकलेले असतात असंही लोकांना वाटतं नव्हे तसं आहे तरी लवकरात लवकर ठेविदारांना न्याय मिळावा व त्यांचे पैसे कसे लवकर मिळतील या साठी रिझर्व्ह बँकेने सुध्दा सामाजिक बांधिलकी म्हणून ठेविदारांना दिलासा द्यावा ही कळकळीची अंतःकरण पुर्व मागणी आहे.
The future of co-operative bank after BR amendment 2020 as promised by FM is not bright. Even though FM have said it is meant for protecting interest of depositors.
In practice amalgamation scheme made by RBI and approved by Govt for PMC bank is penalising inocent depositors. Depositor’s money is bail in due to no interest for fist 5 years and nominal interest of 2.75% in next 5 years.
If this is not challenged it will become templant for resolution co-operative banks in future.
The co- operative bank will be liquidated or handed over to private bank by bail- in inocent depositor’s life long saving.
Really it’s unfortunate to Canceling the license of City Co- op Bank (CCB) due to Irresponsible Board of Directors & Management of the Bank. NPA was at higher level since Management was unable to recover the given Loan to Fraud people without taking any responsibility by CCB’s Management. RBI is also equally responsible for this worst situation since being the Head Controller of all banking sector why didn’t take Strict Action against the CCB’s Board of Directors & Management after observing the Unhealthy Annual Balancesheet of 2016 /17 ?
Due to this dirty game Dependent Senior Citizens & Deposit Holders of CCB are facing difficult time for survival in this Inflation by loosing their Hard Earnings kept in CCB with good Intentions & by keeping faith on CCB’s Banking Business.
Finance Ministry & RBI Governer must think seriously & Revert their decision of Canceling the license of CCB.