The history of urban cooperative banking sector in India is separated into two parts- Pre Madhavpura and Post Madhavpura. And here comes a piece of news that some of the victims of the Madhavpura Mercantile Cooperative Bank scam will get their deposits back.
The statement comes from the Gujarat Urban Cooperative Banks Federation (GUCBF), reports DNA. Those who had deposits upto Rs two lakh will get their deposits back, 17 years after Rs 1,200 crore scam hit depositors and bankers alike, reports the Daily.
Earlier, during NAFCUB AGM in Delhi Jyotindra Mehta, who is both the President of GUCBF and NAFCUB had said that post Madhavpura, UCBs had a tough time and they had to stand the critical judgement of depositors, regulators and even that of the media.
GUCBF, said in a statement that the announcement that depositors with deposits up to Rs two lakh will get their deposits back is as welcome gesture.
On the issue of money going back to small depositors Mehta is quoted saying “It will be a big relief for small time depositors, senior citizens and those in need of medical treatment. We welcome the move that depositors will finally get their money back.”
