Rupee Co-Operative Bank seeks government’s intervention to solve problems

 – nixatube

Rupee Co-Operative Bank seeks government’s intervention to solve problems – nixatube

Rupee Co-Operative Bank seeks government’s intervention to solve problems

Rupee Co-Operative Bank seeks government’s intervention to solve problems

 – nixatubeRupee Sahakari Bank has notified Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme for withdrawal of up to Rs 5 lakh to account holders.

The Administrator of Rupee Co-Operative Bank, CA Sudhir Pandit, met Union Minister of State for Finance and Banking Bhagwat Karad, and urged him to intervene to resolve the issues being faced by the bank.

According to Pandit, though 99% of depositors will get a refund of their entire deposits as per the amended Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, high value depositors with deposits above Rs 5 lakh will get 65% of their deposits. will be lost. If the bank goes into liquidation. “Most of these depositors are senior citizens and the entire liquidity of around Rs 800 crore will be exhausted when deposits below Rs 5 lakh are fully refunded,” he said. He said that if the liquidity of the bank runs out, then no other bank will come forward for merger.

“A resolution plan or revival will ensure that large depositors do not lose most of their money, as if the bank is liquidated, the large depositors may collectively suffer a loss of Rs 375 crore,” Pandit said.

Significantly, the Reserve Bank of India (RBI) has refused to approve the merger of Rupee Co-operative Bank with Maharashtra State Co-operative Bank (MSSB). The merger proposal with MSCB was submitted later in view of the desire to diversify into the retail business. MSCB is the apex co-operative bank which lends money mostly for agriculture and agri-businesses.

Rupee Sahakari Bank has notified Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme for withdrawal of up to Rs 5 lakh to account holders. The administrators of the Rupee Co-operative Bank said that they would forward all claims made under the scheme to the DICGC by October 15, 2021, after which the claims accepted by the DICGC would be settled within a period of 90 days.

“DICGC asked us to maintain the expenses for running the bank for the next six months, within which it is expected that there will be a resolution plan for the bank whether it is a merger with a larger bank, or its revival. We also met Union Finance Minister Nirmala Sitharaman,” he said.

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