After Closure, Coop Bank Issues Notices to Recover Rs 12.5 Cr Loan

DHENKANAL: Dhenkanal Urban Cooperative Bank (DUCB) has recently issued notices to around 500 loanees in the district for recovery of Rs 12.50 crore. Loans were sanctioned before 2010.

The cooperative bank was liquidated due to persistent bankruptcy by Reserve Bank of India (RBI) on February 17, 2010. Around Rs 10 crore was deposited by the bank customers while the bank had disbursed loan amounting to more than Rs 12.5 crore before closure.

As per provision, Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI, and the bank concerned have to repay the customers having Rs  one lakh and below deposit after liquidation.

Assistant Registrar of Cooperative Societies Sangram Kishore Rout said the bank has returned deposits worth over Rs 6.84 crore to the customers who had deposit of Rs  one lakh and less during 2012-15. Reports said the bank has to return Rs 2.21 crore to its customers having deposit of more than Rs  one lakh.

The DICGC had asked the bank to return the deposited money to customers within three months but it took more than two years, he added.

Bank sources said Rs 93 lakh has been submitted to the corporation as the customers did not turn up to receive their money despite repeated communication. However, 362 customers recently claimed to get their money back but the approval from higher authorities is awaited, Rout said.

RBI had first decided to return the deposited money to customers in a bid to restore faith in banking system.

Later, it was decided to recover the loan amount from defaulters. Notices have been issued to the defaulters. If they fail to repay the loan, the bank will start proceedings against them in court, sources said.

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