Administrator urges RBI for merger of Rupee Bank instead of liquidation
Administrator of the Rupee Co-op Bank CA Sudhir Pandit has urged the Reserve Bank of India (RBI) for allowing the bank to be merged with another strong financial lender. Union minister for state for finance and banking Bhagwat Karad, who navigated the meeting, asked authorities for satisfactory resolution of the bank.
Pandit requested RBI deputy governor Rajeshwar Rao that liquidation of the bank is not the solution. “Instead, we request for merger of the Rupee Bank with other strong bank and protection of depositors who have more than ₹five lakh of deposits,” he said.
He brought to the notice of higher authorities of RBI that it is very necessary to protect the interests of high value depositors who are not insured at par with insured depositors.
“If the bank goes into liquidation, then holders having more than ₹five lakh deposits and majority of whom are senior citizens may lose almost 65 per cent of their deposits,” he said.
Karad also advised the authorities for satisfactory resolution of the bank. Pandit was hopeful about the outcome of the meeting. He also stated that Karad has assured to pursue the matter