10:07 PM
RBI suspends Buldana DGC Bank's licence
THE Reserve Bank of India has suspended Buldana District Central Co-operative Bank's licence for doing any banking transaction as per banking rules. Not just that, the Co-operative Department will appoint administrator for the hank. It has been learnt dial the Bank has decided to knock the door of Nagpur High Coun against the order.
It may be noted that now no money can he withdrawn from the hank without the permission of the admin is lrator. This would definite!) adversely affect thousands of depositors. The Buldana District Central Co-operative Bank was considered as a bank of the district by many people including farmers, teachers, labourers and other employees, who deposited their money fearlessly in the Bank.
Teachers' and employees' salaries went through the hank. Thus, the Bank formed an essential pan of the people's life and Hi financial activities were going on smoothly. However, in last few' years, the Bank management gave loans worth crores to political lead crs and office-bearers in name of developing industries, giving sel rules a miss. These borrowers, caring little for the hank or about farmers and common people, did not repay loans on time, puning the bank in grave financial mess. Many farmers are forced to go 10 others hanks to take loans as Bank has no money to lend them.
Many depositors regularly visit the Bank in the hope of getting their money back but are always told that the Bank has no money and return empty handed. Many of this middle class depositee, who are need of money cither for their wards' education, marriage or health problems, are in a fix as they cannot withdraw their own money.
Many organizations demanded dial die Bank should act again*! the defaulters and recover die money. They also staged agitation for it.
Many local leaders also tried to seek package from State Government to help the hank come out of its financial mess. Dr Rajendra Shingne also resigned from MI.As position lo save the Bank. His efforts bore fruits and some days back. State Government's Co-operative Department prepared a proposal lo give Rs 125 crore package to Buldana District Co-operative Bank However before a final decision could be made. the Reserve Bank' s order has come.
Now the administrator will have a big task to recover loans from defaulters lo bring back the Bank to a stable position
It may be noted that now no money can he withdrawn from the hank without the permission of the admin is lrator. This would definite!) adversely affect thousands of depositors. The Buldana District Central Co-operative Bank was considered as a bank of the district by many people including farmers, teachers, labourers and other employees, who deposited their money fearlessly in the Bank.
Teachers' and employees' salaries went through the hank. Thus, the Bank formed an essential pan of the people's life and Hi financial activities were going on smoothly. However, in last few' years, the Bank management gave loans worth crores to political lead crs and office-bearers in name of developing industries, giving sel rules a miss. These borrowers, caring little for the hank or about farmers and common people, did not repay loans on time, puning the bank in grave financial mess. Many farmers are forced to go 10 others hanks to take loans as Bank has no money to lend them.
Many depositors regularly visit the Bank in the hope of getting their money back but are always told that the Bank has no money and return empty handed. Many of this middle class depositee, who are need of money cither for their wards' education, marriage or health problems, are in a fix as they cannot withdraw their own money.
Many organizations demanded dial die Bank should act again*! the defaulters and recover die money. They also staged agitation for it.
Many local leaders also tried to seek package from State Government to help the hank come out of its financial mess. Dr Rajendra Shingne also resigned from MI.As position lo save the Bank. His efforts bore fruits and some days back. State Government's Co-operative Department prepared a proposal lo give Rs 125 crore package to Buldana District Co-operative Bank However before a final decision could be made. the Reserve Bank' s order has come.
Now the administrator will have a big task to recover loans from defaulters lo bring back the Bank to a stable position
Posted in: News 2014
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