The depositors associated with Mumbai-based City Cooperative Bank are feeling very helpless and requested Prime Minister Narendra Modi as well as Union Finance Minister Nirmala Sitharaman to listen to their plight.
They complained that RBI has misused its power cancelling the license of City Cooperative Bank. They have called for serious action against the management which is involved in misappropriation of funds of the gullible depositors of the bank.
Indian Cooperative received many emails from depositors, who have expressed their disappointment at the cancelling of the bank’s license. They warned that if the RBI did not restore the bank’s license then they would protest.
One of the depositors Jaya D Dhavale wrote, “How the RBI is going to protect the interests of the depositors of the City Coop bank by cancelling its licences and stopping it from doing any banking activities. Will the RBI explain this to depositors and the general public? Will FM, Home Minister or PM look into this matter and help depositors get their hard earned money?, he asked.
Another depositor wrote, “The RBI is working as per its wishes and whims. It allowed PMC bank to be taken over by Unity Small finance bank within no time and without any hesitation. The lobby of PMC bank depositors was very strong and had political connections. The RBI employees’ Credit Society also had an account with PMC and hence the RBI took no time to help PMC come out of trouble” the depositor said.
“I do not understand how the closure of the bank will help to protect the interests of the depositors. Will RBI explain this? We also do not know what action the RBI or Govt. agencies have taken action against the Chairman, Directors, officers responsible for this scam and ultimately duping the depositors on whose money the bank had been doing business for many years. All the culprits should be punished and the Bank be allowed to resume its business”, he added.
In his comment, Paresh Kothare said, “This is absolute high headedness on the part of RBI. They are destructors of deposits rather than protectors. By refusing merger with Cosmos Bank they have in fact denied depositors getting back at least 65 percent of deposits on Day 1 of the merger. Where is logic? Can our FM and PM answer please and save us by rejecting the RBI’s top down approach, he noted.
“Cosmos bank has already conducted their audit hence they found it fit to take over. In spite of their willingness, RBI has not granted them permission to do so. This is partial on their part. Most of the amount due had been recovered by City coop bank. The bank has around 10 branches whose property is worth crores of rupees”, one of the depositors said.
Another said, “The state and central government should look into this and handover the inquiry to a central agency so that facts come out in the open and we ordinary account holders are returned their hard earned money”, he said.
It bears recalling that the bank’s depositors are willing to convert maximum 35 percent of their deposits above Rs 5 lakh into the share capital, in order to protect their 65 percent or more deposits but all hopes are in vain.
