In a significant breakthrough for cooperative credit societies, Maharashtra based Malkapur Urban Cooperative Bank (UCB), which is currently under liquidation, has initiated the refund of 50% of the trapped deposits, offering long-awaited relief to hundreds of affected cooperatives.
The development marks a positive step forward in resolving a prolonged financial deadlock involving Rs 166.70 crore in deposits from 122 credit cooperative societies. The refund process, which has officially commenced, is expected to be completed within the next 10 days.
This partial repayment comes in response to sustained pressure from cooperative societies and their leaders. Spearheading the movement was Kaka Koyate, Chairman of the Maharashtra State Federation of Cooperative Credit Societies, who led a series of protests across Buldana and other regions.
The demonstrations targeted Dr. Ashok W. Kharat, the liquidator appointed to oversee Malkapur UCB’s resolution process, urging faster disbursement of the stuck funds.
In July 2023, the Reserve Bank of India canceled the banking license of Malkapur Urban Cooperative Bank, leaving depositors—especially smaller credit societies—facing severe liquidity challenges. These societies rely heavily on their bank deposits to serve their members and carry out routine operations.
Speaking after the announcement, Koyate described the partial refund as a “moment of justice” for the societies. “We welcome this step, but our struggle will continue until every rupee—along with the accrued interest—is returned to the rightful depositors,” he stated.
