Bengaluru

Co-operative bank meeting postponed

Customers of Sri Gururaghavendra Sahakara Bank Niyamita standing outside the bank in Basavanagudi on Monday to collect coupons to withdraw money from their accounts.

Customers of Sri Gururaghavendra Sahakara Bank Niyamita standing outside the bank in Basavanagudi on Monday to collect coupons to withdraw money from their accounts.   | Photo Credit: V Sreenivasa Murthy

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Bank president has no answers to the questions of worried customers

Tension prevailed at the Gurunarasimha Kalyanamantapa where hundreds of anxious customers of Sri Gururaghavendra Sahakara Bank Niyamita had gathered for a scheduled meeting called by the bank. After hundreds of the bank’s customers waited for over two hours, the bank president appeared before them only to state that the meeting had been postponed to January 19.

Since the Reserve Bank of India’s clampdown on the bank, several citizens have been gathering at the bank, seeking clarity from the management.

The RBI notice, a copy of which is available with The Hindu, says that the urban cooperative bank has been effectively barred from any operation — granting new loans, making investments or accepting new deposits — except for allowing withdrawal of a maximum of ₹35,000 of the total balance in any account. While it clarifies that this does not mean cancellation of banking licence, it said restrictions will continue “till its financial position improves”.

K. Ramakrishna, bank president, said, “We have to follow the RBI guidelines and customers can withdraw ₹35,000 from the balance of any account for the next six months. If the RBI revokes the curb on our bank, we are ready to give the money back to the customers. We have requested RBI officials to attend the meeting with the bank’s directors to answer queries of customers."

When the customers demanded answers, he said: “I am as helpless as the customers are right now. Let's organise a rally to the RBI office and get some clarity.”

Earlier in the day, hundreds of customers stood in a queue outside the bank in Basavanagudi to collect coupons to withdraw money from the ATM.

It is said that one of the customers called Bengaluru South MP Tejasvi Surya and put him on speaker-phone for the benefit of others. He reportedly tried to assuage frayed nerves of the customers by promising to raise the issue with Finance Minister Nirmala Sitharaman.

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Printable version | Jan 20, 2020 4:17:25 PM | https://www.thehindu.com/news/cities/bangalore/co-operative-bank-meeting-postponed/article30561489.ece

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