RBI cancels bank license: The bank says that since 2014, about Rs 500 crore has been recovered, but the NPA burden of about Rs 100 crore remains. In such a situation, the question is that even if the recovered amount comes, it will go to DICGC, then what will happen to the depositors.
Mumbai: Many decisions regarding banks have been taken from time to time by the Reserve Bank of India. RBI has canceled the license of ‘The Kapol Co-operative Bank Limited’ of Mumbai. Those customers who have an account in this bank may face problems. The central bank has said that the bank does not have sufficient capital and there is no earning potential, due to which RBI has taken this decision. After this decision, deposits of more than Rs 150 crore of about 42,000 account holders are stuck. Account holders are in shock, the future of the staff working for years is also at stake.
The Reserve Bank of India said in a statement that with the cancellation of the license, the co-operative bank has been immediately banned from banking business, which includes accepting deposits and returning deposits.
Customers will get Rs 5 lakh
The Reserve Bank said that every depositor will be entitled to receive deposit insurance claim amount of up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). In this way, about 96.09 percent of the depositors of the bank will be entitled to get their entire deposit amount from DICGC.
What do account holders say?
After this step of RBI, the problems of many account holders have increased. Rajesh Patel, a 70-year-old businessman who has been running a hardware store in Mumbai for 52 years is worried. Talking to NDTV, he told, “Somehow Rs 5 lakh came out, but about Rs 4 lakh is still stuck in ‘The Kapol Co-operative Bank’.”
Rajesh Patel says, “I opened the account 20 years ago. There was trust. Now I don’t know what to do. There is little hope left of getting the money.”
According to the bank, there are 41,000 depositors with deposits of less than Rs 5 lakh, out of which about Rs 36 crore has to be repaid. At the same time, there are about 1622 depositors with deposits above Rs 5 lakh, whose balance is around Rs 131 crore. If data is to be believed, till now Rs 240 crore has been sent from DICGC to the depositors of Kapol Co-operative Bank.
DICGC will have to refund the amount
The concern of the bank is that this amount will have to be refunded to DICGC, that is, the money received from recovery will have to be given to DICGC instead of the depositors. In such a situation, the bank is now expecting some changes in these rules.
Bank cannot give loan
The central bank said that Color Merchants Cooperative Bank can neither give loans nor renew old loans without its prior permission. Apart from this, it has also been barred from making any investment and accepting new deposits. . RBI has said that a depositor will not be allowed to withdraw more than Rs 50,000 from his total deposits within the bank.
What does the CEO of the bank say?
Brijina R Coutinho, CEO of ‘The Kapol Co-operative Bank’, told NDTV, “If the insurance is paid to DICGC then why take the refund. Then how will we give the money to the account holder. It will go towards refund. So this There should be some changes in the rules. We are going to meet RBI with this appeal. I have 35 years of banking experience. In such situations, it is largely the depositors who sell out.”
What do financial experts say?
Pankaj Mathpal, financial expert and CEO of Optima Money Managers, says, “You can get an amount up to Rs 5 lakh from DICGC, but it is difficult to get money above that.”
The community-run Kapol Co-operative Bank was established in 1939. At present it has 15 branches, out of which 14 are in Mumbai and one in Surat. Due to the deteriorating financial condition, on March 30, 2017, RBI had banned any kind of deposits and credit of the bank. The bank says that since 2014, about Rs 500 crore has been recovered, but the NPA burden of about Rs 100 crore remains. In such a situation, the question is that even if the recovered amount comes, it will go to DICGC, then what will happen to the depositors.
