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Remya Nair

Mumbai, Sept. 8 Depositors of the erstwhile South Indian Cooperative Bank (SICB) are planning to file a petition under Right to Information Act with respect to recovery of the foregone amount of their deposits, post it merger with the Saraswat Cooperative Bank.

According to the merger details, SICB customers with deposits up to Rs 1 lakh will get 55 per cent of their deposit amount from Saraswat Bank, and the remaining 45 per cent from the Deposit Insurance and Credit Guarantee Corporation.

However, depositors with more than Rs 1 lakh in their accounts will only get 55 per cent of the amount from Saraswat Bank and will have to forego the remaining 45 per cent.

“We plan to seek information from the Reserve Bank of India and Saraswat Cooperative Bank on whether the foregone amounts would be paid back to the depositors if the borrowers of SICB repay their debt in instalments,” said Mr K.A. Vishwanath, a depositor with the bank.

A public interest litigation was filed with the Bombay High Court in 2005 to prevent the closure of the bank. During the hearing of the PIL, the bank’s major borrowers had given an undertaking that they would repay their loans in instalments, said the legal advisor to the depositors.

Saraswat Bank’s Managing Director, Mr S.K. Banerjee, the bank was not sure of how much would be recovered.

More Stories on : Co-operatives | Courts/Legal Issues | Fixed Deposits

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