BHUBANESWAR: The State Government has granted permission for refund of depositors’ money up to Rs 1 lakh out of the funds available with the liquidator of the now defunct Urban Cooperative Bank (UCB) Limited, Bhubaneswar.“After careful consideration, the Government has accorded permission for withdrawal and utilisation of an amount of Rs 8.67 crore out of the interest accrued on the share capital of Rs 6 crore invested by the Government and kept as fixed deposit in Odisha State Cooperative Bank (OSCB),” said a communication from Cooperation department to the Registrar of the Cooperative Society (RCS).
The balance requirement of Rs 6.48 crore towards payment to the depositors up to Rs 1 lakh should be paid from the available balance fund of the UCB, Bhubaneswar (under liquidation) as approved by the Deposit Insurance and Credit Guarantee Corporation (DICGC), the letter said.The department had moved the State Government in October this year requesting permission for refund of Rs 15,16 crore to 6,446 depositors as approved by the DICGC. Each of the depositor will get up to Rs 1 lakh maximum. This is the insurance cover per bank account irrespective of the amount of deposit.
As a total fund of Rs 13.55 crore is available with the liquidator creating a shortfall of over Rs 1.61 crore, the department has requested the Government to give permission for utilisation of its share capital for refund of the depositors’ money.According to the department, around Rs 33.87 crore of deposits of 11,672 account holders were locked in the bank which has been liquidated. While deposits amounting to Rs 29.67 crore of 7,700 depositors could be traced, another deposit of Rs 4.2 crore of 3,972 accounts is yet to be located.
The total loan outstanding against 1,546 depositors is more than Rs 42.77 crore while the bank could recover Rs 70.31 lakh since the date of liquidation.The office of the RCS has directed the Deputy Registrar of the Cooperative Societies (DRCS), Khurda division-cum-liquidator to withdraw money from the fixed deposit kept in OSCB as and when required for refund to the depositors.
The Government has directed the RCS to review the recovery of loans with interest from willful defaulters on monthly basis and the action taken against the UCB employees for their financial irregularities and mismanagement of the bank by constituting a team of officers from the department and RCS office.
Financial crisis
Rs 15,16 crto be refunded
6,446 depositors
Rs 33.87 crdeposits of 11,672 account holders locked
Rs 29.67 crof 7,700 depositors could be traced
Rs 4.2 cr of 3,972 accounts yet to be located
Rs 70.31 lakh recovered by the bank
