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Payments to MMCB depositors from Tuesday Monday, September 17, 2001

TIMES NEWS NETWORK
AHMEDABAD: The Madhavpura Mercantile Co-operative Bank will start making repayment deposits up to Rs 1 lakh to its depositors from Tuesday onwards as part of implementation of the bank revival scheme approved by the Central government to restore the faith in the co-operative sector that is shaken by Rs 1,030-crore scam in one of the leading co-operative banks in Gujarat.

This announcement was made by Amit Shah, the spokesman for the MMCB revival committee and chairman of Ahmedabad District Co-operative Bank, at a press conference here on Sunday.

Shah said the process of payment was stalled following a representation made before the Election Commission of India pleading that it would influence voters in by-election to Sabarmati Assembly and Sabarkantha Lok Sabha constituencies scheduled on September 20.

However, the commission after considering all the relevant matters has given no objection to the implementation of the scheme.

To begin with, the repayments of all deposits up to Rs 1 lakh will start from Tuesday onwards in 22 branches in the city while it will begin from Thursday in other centres like Vadodara, Surat and Mumbai.

The payments will be made from the Rs 465 crore received by the bank from the depositors' insurance scheme of Reserve Bank of India following liquidation of MMCB.

He said the bank's new board of management will be constituted shortly and added that senior MMCB official R M Shah has been appointed the interim CEO of the bank. The bank's normal functioning will begin once the initial payments were made to depositors numbering over three lakh.

Shah, who is also a senior BJP legislator and has evinced keen interest in the revival of the tainted bank, asserted that the revival package of Rs 800 crore was to be mobilised by the co-operative banking sector for which the Central as well state governments have agreed to give default guarantee.

He said, "The revival plans have in their calculations repayment of public deposits from the fourth year and those of the existing bank deposits from the sixth year. The repayment of fresh deposits start from the 11th year and would be paid in five years."

To avoid heavy rush of depositors at the branches of MMCB, the bank management has chalked out a programme for smooth payments. Accordingly, those having deposits of Rs 10,000 and above will be repaid the amount on the first two days - Tuesday and Wednesday - while depositors of Rs 25,000 will be repaid in the second stage on Friday and Saturday.

The deposits of Rs 5,000 will be paid in cash while any amount above that will be issued through cheques.

Shah said it was unfortunate that the GPCC leaders tried to obstruct the repayment to depositors by complaining to Chief Election Commissioner that the move was aimed to lure voters for the Sabarmati and Sabarkantha by-polls.

As the MMCB revival scheme is to be executed by the state government, the registrar of the co-operative - R M Joshi - will look after the implementation of the revival plan and not the Central registrar as was feared by some functionaries of the co-operative banks.

In view of the campaigning going on for the by-elections, the bank will reopen without any formal function to mark the revival of the bank.

News Source : Times News Network [India's best Newspaper]

 

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