Page 19 - Banking Finance September 2022

Rupee Cooperative Bank The IBA has been asked to conduct banks, including eight from
workshops for discussing the issues re- Maharashtra, in October. RBI had im-
will cease to exist
garding preparation of a viability plan posed several restrictions, including on
Rupee Cooperative Bank will cease to for the regional banks, said an official. withdrawals, by depositors of these 17
exist as a bank from September 22. banks in July in view of their deterio-
At a review meeting between Finance
Many of high value depositors are se- rating financial positions.
Minister Nirmala Sitharaman and RRB
nior citizens. According to the bank, the
chiefs last month, these lenders were Of the 17 cooperative banks, eight are
high-value depositors will get back a
asked to submit a road map with imple- in Maharashtra, four in Uttar Pradesh,
maximum of Rs 5 lakh, regardless of
mentation timelines for scaling up op- two in Karnataka, and one each in New
their total deposit at the bank, after
erations and ensuring deeper penetra- Delhi, Andhra Pradesh and West Ben-
liquidation in accordance with the De-
tion. gal.
posit Insurance and Credit Guarantee
Corporation (DICGC) Act. At a later date, a meeting with stake- The cooperative banks from
holders would be held for finalising a Maharashtra are: Sahebrao Deshmukh
Altogether 99% of the depositors, ac-
viability plan for each of the 43 Cooperative Bank, Sangli Sahakari
cording to the RBI and the bank, are
RRBs.Towards this, the Centre has Bank, Raigad Sahakari Bank, Nashik
entitled to receive a full refund of depos-
roped in the IBA since it has been un- Zilla Girna Sahakari Bank, Saibaba
its under the DICGC Act, as their depos-
dertaking the EASE reforms for PSBs. Janata Sahakari Bank, Anjangaon Surji
its were under Rs 5 lakh each. Around
Nagari Sahakari Bank, Jaiprakash
Rs 700 crore have already been disbursed The bank's lobby group has been asked
Narayan Nagari Sahakari Bank, and
to assist with the preparation of the
to 64,000 depositors, who had deposits
The Karmala Urban Co-op Bank.
viability plan for RRBs.It is to be done
under Rs 5 lakh each, under the DICGC
in consultation with National Bank for As per the DICGC, the banks from Uttar
Act. Sources added that another Rs 250
Agriculture and Rural Development Pradesh whose eligible depositors will
crore were linked to those with deposits
(NABARD), sponsor banks and regional be paid in October are: Lucknow Urban
of under Rs 5 lakh each.
lenders. Co-op Bank, Urban Co-operative Bank
Centre asks IBA to ready (Sitapur), National Urban Co-op Bank
DICGC to make payments (Bahraich), and United India Co-op
EASE-like plan for RRBs
Bank (Nagina).
Centre has asked the Indian Banks' in October to depositors
The banks in Karnataka are: Sri
Association (IBA) to prepare a viability of 17 Co-op banks facing Mallikarjuna Pattana Sahakari Bank
plan for regional rural banks (RRBs)
RBI restrictions Niyamita (Maski) and Shri Sharada
similar to the Enhanced Access and
Mahila Co-operative Bank (Tumkur).
Service Excellence (EASE) for public DICGC will be making payments to the
sector banks (PSBs) eligible depositors of 17 cooperative Eligible depositors of Ramgarhia Co-
BANKING FINANCE | SEPTEMBER | 2022 | 19