Ajmer Urban Co-op Bank: Depositors wail

The three branches of Ajmer Urban Cooperative Bank would not be able to function anymore as RBI cancelled its license on Friday leading to widespread heart-burns among the depositors.

The bank was nearly 90 years old and was constantly fighting the rising NPA. According to sources the UCB had to pay back Rs 85 crore. Sources said the bank arranged Rs 65 crore from defaulters but fell short of more than Rs 20 crore to pay to the account holders.

The RBI provided the UCB enough time for recovery of loans and making payment to its depositors but the bank failed to act on the orders leading to the closure.

Agitated depositors surrounded the bank and shouted slogans against the management. The Board Directors who are blamed for entering into hanky–panky to lead to such a pass were not to be found.

There are about 22,000 account holders in the back with more than Rs 85 crore of savings from the customers.