Home CITY UPDATES Thanks to Modi govt, depositors of Bengaluru’s scam-hit Guru Raghavendra Bank have...

Thanks to Modi govt, depositors of Bengaluru’s scam-hit Guru Raghavendra Bank have received Rs 5 lakh each: Bengaluru South MP

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Thanks to Modi govt, depositors of Bengaluru's scam-hit Guru Raghavendra Bank have received Rs 5 lakh each: Bengaluru South MP
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Through DICGC, over Rs 400 crore directly transferred to aggrieved depositors of failed banks countrywide on Monday: Tejasvi Surya

NEW DELHI/BENGALURU:

Tejasvi Surya, Bengaluru South MP, has said the disbursement of Rs 5 lakh deposit insurance to depositors of Sri Guru Raghavendra Cooperative Bank is a big reprieve provided by the Narendra Modi government.

On Monday, 12,014 claims from depositors worth around Rs 401 crore were paid by the Deposit Insurance and Credit Guarantee Corporation (DICGC). The remaining claims will be processed soon.

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Addressing a presser in New Delhi, Surya said, “A majority of the depositors are retired senior citizens. The measures taken by the Union government speak volumes of the priority that the Narendra Modi government has accorded to providing relief to the middle class.”

Banking reforms

“As soon as the Modi government and the Finance Minister got to know about the crisis at Sri Guru Raghavendra Bank, they took multiple steps to provide relief to the depositors who were on the verge of losing their hard- earned savings, as well as to bring more professionalism in the cooperative banking sector.

Thanks to Modi govt, depositors of Bengaluru's scam-hit Guru Raghavendra Bank have received Rs 5 lakh each: Bengaluru South MP

“In 2020, the government raised the insurance cover for depositors from Rs 1 lakh to Rs 5 lakh. In the same year, on Sept 17, 2020, the government passed amendments to the Banking Regulation Act, 1949, bringing all cooperative banks under the ambit of the Reserve Bank of India (RBI).

“Earlier this year, on August 9, the government amended the DICGC Act, 1961, and paved the way for depositors to receive Rs 5 lakh from the DICGC within 90 days of filing an application. The deposit insurance would also be provided even if there’s a moratorium on the bank. This has benefited 98.3% of the depositors and represents 50.9% of the deposit value in all banks,” Surya said.

Bengaluru bank’s skeletons

The RBI had imposed regulatory restrictions on Sri Guru Raghavendra Cooperative Bank on January 10, 2020, after its fraud of presenting fake P/L statements came to the fore. There are 43,619 depositors in Guru Raghavendra Bank and around 33,390 account holders have deposits up to Rs 5 lakh.

The total deposits in the bank amounted to Rs 2,403.21 crore, while the total advances or the amount of loans given out by the bank was around Rs 1,438 crore. The gross NPA, however, stands at Rs 1438 crore as on 31st March, 2020. Around 27 borrowers have borrowed upwards of Rs 927 crore and have contributed to more than 70% of the total NPAs in the bank.

“For the first time in India’s history, depositors of failed cooperatives have gotten their deposit insurance in the shortest possible duration. The large disbursal exercise on Monday covered 16 stressed banks. The transfer of money for the remaining depositors will happen soon. The last date of submission of documents in the second phase is December 10, while the date of payment is December 31, 2021,” Surya added.

ಇದನ್ನೂ ಓದಿ: ಗುರು ರಾಘವೇಂದ್ರ ಬ್ಯಾಂಕ್ ಠೇವಣಿದಾರರಿಗೆ 5 ಲಕ್ಷ ರೂಪಾಯಿ ವಿತರಣೆ

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