Majority of depositors have responded positively to Admin Board proposal of locking their deposits in Pune based Rupee Cooperative Bank. They are ready to wait for 2-3 years till the mess is cleared and withdrawal of their deposits becomes smooth.
This understanding is based on scores of responses received by Indian Cooperative desk in replies to the news item titled” Rupee Bank: Admin Board moots bold step”.
Readers would note that the Administrative Board has come up with a bold proposal of saying goodbye to all the staff numbering 550. It is ready to settle their claims at one go and this will cost the Bank about Rs 40 crore. The UCB pays them annual salary to the tune of Rs 30 crore.
Earlier Chairman of Admin Board Mr Mukund Abhyankar said “Our chief goal is to protect the deposits of our members. Presently we have about Rs 750 crores in deposits and salaries are being given out of that only. With one time settlement we would unburden the UCB of a great financial obligation and that way we can safeguard deposits of the bank. Only thing I am suggesting is to a locking period of 2-3 years in which the depositors would not be able to take out their money but interest on their deposits would accrue nonetheless, explained the board chairman.
Meanwhile, an investigation has revealed that scores of employees of the Pune-based Rupee Cooperative Bank including some former directors had indulged in irregular lending practices. The bank has decided to recover a cumulative amount of Rs. 1,491 crore from them , reports Times of India.
The investigation had begun way back in 2007.
Sources close to the bank are quoted saying, there have been irregular transactions in 227 loan cases altogether. The recovery proceedings will soon be initiated against the guilty, sources say.
Meanwhile, cooperation commissioner has said he would begin the recovery proceedings after going through the investigation report.”
The RBI has placed restrictions on the bank since 2013 owing to its poor financial health. About 6,20,000 people, who have deposits of over Rs 1,520 crore in the bank, have been unable to withdraw their money because of the restrictions.
Dear Sir
Depositors will support for your suggestion,if bank is merged with nationalised bank and saving accounts can be operated and fix deposits are in safe hand of nationalsed bank. But not in hagging as of today’s status. Depositirs will support you for concrete actions and not false commitments.