Rupee Coop Bank depositors oppose DICGIC decision to pay Rs 5 lakh to account holders of stressed coop banks – The Financial Express

Clipped from: https://www.financialexpress.com/industry/banking-finance/rupee-coop-bank-depositors-oppose-dicgic-decision-to-pay-rs-5-lakh-to-account-holders-of-stressed-coop-banks/2337802/

Besides PMC, the large banks include Rupee Cooperative Bank, Kapol Cooperative Bank, Maratha Coop Bank, and City Coop Ban, all from Maharashtra.

rupee co-opRupee Cooperative Bank, headquartered in Pune, has been under strict banking restrictions because of mounting debt.

A group of people claiming to represent the interests of account holders and depositors of Rupee Cooperative Bank has opposed the decision taken by the Deposit Insurance and Credit Guarantee Corporation (DICGC) to pay depositors of 21 stressed cooperative banks a sum of Rs 5 lakh within 90 days.

The DICGC has said that, following the amendment of the DICGC Act, it will make payments to depositors within 90 days. Besides PMC, the large banks include Rupee Cooperative Bank, Kapol Cooperative Bank, Maratha Coop Bank, and City Coop Ban, all from Maharashtra. Depositors in these banks have been waiting for years for their money. RBI had placed the banks under its all-inclusive directions, which included restrictions on withdrawal of deposits.

Dhananjay Khanzode, one of the depositors of the Rupee Cooperative Bank, said that depositors should be given their entire amounts and not just Rs 5 lakh since they have been waiting for years for their money. He asked depositors to wait for a month since the decision of the Bombay High Court is still awaited. The Rupee Cooperative Bank depositors had filed a civil writ petition with the Bombay High Court, seeking release of their deposits and action against the current administrators of the bank.

Khandzode said that he would approach depositors of the other stressed banks as well to jointly tackle this issue.

DICGIC has said that banks will have to submit a claim list by October 15 and update the position as of November 29 with principal and interest in a final updated list.

Rupee Cooperative Bank, headquartered in Pune, has been under strict banking restrictions because of mounting debt.

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