Baripada: Over 70,000 depositors of Baripada Urban Cooperative Bank (BUCB) are in distress as they are unable to withdraw their money after the RBI cancelled the bank’s licence in 2014. With their money stuck in the bank, the depositors are now cursing their fate.
According to reports, 72,324 customers have Rs 71.56 crore locked up in the bank. BUCB was set up in 1958 with an aim of providing banking and lending facilities to the tribal and backward people of Mayurbhanj district. Among the cooperative banks in the state, this bank had earned a name for its service and over the years created a customer base of over 70,000.
The RBI had granted licence to the bank in 2009. However, the bank gradually plunged into fiscal crisis and RBI revoked its licence in 2014. Then the state government had started to sell off BUCB’s movable and immovable assets in October 2015 and liquidation process was initiated.
Later, the bank authorities challenged the move in the High Court. “In the absence of licence, the bank is not in a position to make transactions,” said BUCB president Giridhari Prusty at a press meet here Sunday.
Prusty said there is a need for concerted efforts at all levels to revive the bank. The management body of the bank was nominated by the government from 2001 to 2014. During the period, the bank continued to fall into crisis due to faulty management, negligence of the staff and the growing NPAs, he added.
A list of 20 defaulters was named in a press release. These defaulters will have to pay over Rs 62.21 crore. Besides, the bank has lent to 2,953 people while 72,324 customers will have to receive Rs 71.56 crore from the bank.
Prusty said if the state government takes up the issue with the RBI, the latter may grant permission to the bank.
