Liquidation of Bhubaneswar Urban Co-operative Bank a matter of time

Liquidation of Bhubaneswar Urban Co-operative Bank  a matter of time

Bhubaneswar: Bhubaneswar Urban Co-operative Bank likely to be liquidated soon after the Reserve Bank of India  de-licensed the Bank . 

The RBI move came after the state government failed to take steps for its merger with any other co-operative society in the state.

Confirming the development the Chief Executive Officer (CEO) of the bank Patanjali Tripathy said the Bank  received the letter on Monday and they are left with no other option other than initiating process to liquidate the bank within a month’s time.

With the de-licensing of the bank, its business transactions have come to a halt and the security of the depositors’ money has become uncertain.

Now officials apprehend that once the bank was liquidated, it would be difficult to collect the money that has been loaned.

While the bank has a liability of Rs 28 crore, it needs to collect nearly Rs 34 crore from the various people who have taken loans. Of this, Rs 19 crore is the principal amount and remaining is interest.

The bank has nearly 14,000 customers.