Complaints about Shivamogga District Cooperative Central (SDCC) Bank allegedly imposing unjust conditions on its customers poured in at a meeting held here on Tuesday to review the progress of implementation of Karnataka Development Programmes (KDP).
Araga Jnanendra, Tirthahalli MLA, alleged that, 13% of the money remitted to the accounts of SDCC Bank customers to compensate for the loss caused by the recent rain — including damage to houses and crop loss — was being deducted by the bank administration unlawfully. Rajanna Reddy, MD of the bank, said it was issuing shares to customers towards the money deducted.
Slamming the administration for deducting money in the compensation paid for the loss suffered from rain and flood, K.S. Eshwarappa, Minister for Rural Development and Panchayat Raj, who chaired the meeting, said the deduction should be stopped immediately and the amount that had been deducted should be refunded to the customers.
Kumar Bangarappa, MLA, Sorab, expressed displeasure that, for those with savings accounts in nationalised or private banks, for payment of compensation — related to crop insurance and for loss suffered owing to natural calamity, subsidy amount of government sponsored schemes — the SDCC Bank was insisting on opening additional accounts with it. Also, though zero-balance accounts were being opened under Pradhan Mantri Jan Dhan Yojana, the bank was compelling its customers to maintain a minimum balance of ₹2,000, he said.
K.E. Kanthesh, president, Standing Committee on Education and Health of Zilla Panchayat, said restrictions were imposed even for withdrawal of money from the accounts of women self-help groups.
Expressing displeasure against the bank’s style of functioning, Mr. Eshwarappa directed the Joint Registrar of Cooperative Societies to probe into the allegations levelled by the elected representatives against it and submit a report to him in a week.
On the loss caused by the rain in Malnad region, Mr. Jnanendra and H. Halappa, MLA, Sorab, demanded special financial grant from the State to repair the banks of rivulets and streams that breached and for removal of silt accumulated on agricultural land.
