Maharashtra government has asked RBI to allow merger of Rupee Bank with MSCB, the two cooperative banks have claimed in a joint statement. The move is supposed to help Rupee’ Bank’s depositors recover their money.
Vidyadhar Anaskar, Chairman of MSCB’s administrative board has confirmed that the proposal for merger has been submitted to RBI.
Indian Cooperative has learnt that the proposal of merger of Rupee Bank with MSCB is gathering dust in the RBI corridors for close to five months. Though RBI does give extension to the UCB again and again, it is yet to take a call on its merger.
It is to be noted that MSC Bank has already carried out the due diligence. The top official sources of MSC Bank said, “So far we have not received the approval from the apex bank RBI to takeover Rupee Bank and the matter still is under consideration”.
The current merger proposal, among other things, includes allowing Rupee bank depositors with Rs 1 lakh deposit to withdraw money within one year in five installments. Those having more than Rs 1 lakh deposit can withdraw 20 per cent money every year after first 12 months.
Pune based Rupee Co-operative Bank was placed under directions from close of business on February 22, 2013. The validity of the directions was extended from time to time. The current Directive issued in December is valid till February 29, 2020.
Earlier, on the eve of the state assembly polls the Rupee Bank Depositors Forum had demanded Maharashtra government to complete the process of merger of bank with MSC Bank.
“We are requesting the state government to complete the process of merger of the ailing Rupee Bank with MSC Bank.”, says Shrirang Parsapatki, who is heading the Forum.
The Statutory Audit conducted on the UCB saw no adverse remarks and the Board of Administrators led by Anaskar is being appreciated for their mature handling of the crisis.
The Bank has paid Rs 332 crore to Rs 83,777 needy depositors under the hardship scheme of RBI. The Bank is having deposits of Rs 1,297 crore,” a release from the UCB sent earlier read.
More than 6 lakh depositors are associated with the Rupee Bank.