T P Viswanathan
Can you enlighten me on the rights of unpaid depositors of a multistage co-op bank if it gets permission to convert into commercial bank?
Despite extensive search I am unable to get an answer to it. Section 56 of the Banking Regulations Act says the provisions of the Act shall apply to all types of co-op banks. Commercial banks are registered as a company under the Companies Act too.
Nearly 4000 depositors of a failed bank which was taken over by a multi state co-op bank are going to be adversely affected, if the latter bank gets permission to convert.
One last question. Can you facilitate an online petition of the affected depositors! If yes, what are the terms and conditions.
Fervently looking for a response,
I C Naik
Deposits are under Contracts with specific terms and conditions. Conversion of form of organisation is a proprietary right and Depositors do not own the bank just as its shareholders do. Deposits in cooperative banks i this country are governed by the faith of depositors in God as the managements are no trust worthy.
