The Administrative Board of Rupee Bank is meeting RBI officials to seek certain clearances for the beleaguered UCB to be back on the rails. There are some technical aspects and some policy matters, said the Board Chairman Mr Mukund Abhyankar to Indian Cooperative.
One issue which has eluded solution is cases in which a customer has both deposits in the bank and has also taken loan from the bank. The Administrative Board is of the view that adjustments of loans against the deposits should be allowed.
But the RBI regulator differs. It says that it would amount to injustice for those depositors who have taken no loans. There would be a clear cut favour to those who have availed loan in the past but other depositors would have no benefit from it. RBI underlines that any move by the Administrative Board should give justice to all the victims.
Seized with the issue of lessening the burden as much as possible the Board is nonetheless negotiating with the RBI to get a nod and the meeting assumes importance in light of this.
The extended tenure of the Administrative Board is coming to an end on 20th of February and it is in great haste to solve the issue of merger with other banks before the time is up.
We have already begun the negotiations with 3-4 potential players for the merger and one of them is also a well-known nationalized bank, Abhyankar said shielding the bank’s anonymity, to this correspondent.
Everything has boiled down to one thing-VRS for the staffs. So far as managing the banks till the process of merger is over; it could be done by re-employing some of the staff on contract basis for a period of four months, Abhayankar added.