RBI scrutinising merger proposal

ST CORRESPONDENT
Saturday, 29 February 2020

Sudhir Pandit said, “Rupee Bank has collected Rs 13.53 crore as debt recovery by the end of January 31 in the current financial year. The amount will go up to Rs 20 crore by March-end.

PUNE: The Reserve Bank of India (RBI) has begun the scrutiny of the joint proposal submitted by Maharashtra State Co-operative Bank (MSC) and Rupee Co-operative Bank regarding Rupee Bank’s merger and the decision will be taken by March 31, said Rupee Bank’s administrative body president Sudhir Pandit.

The restrictions set by RBI on Rupee Bank ended on February 29. The RBI has extended the restrictions by three months and the revised date is May 31, 2020.

Pandit said, “Rupee Bank has collected Rs 13.53 crore as debt recovery by the end of January 31 in the current financial year. The amount will go up to Rs 20 crore by March-end. We will ensure that the depositors of Rupee Bank do not incur any losses and there will be no extra load on the depositors of MSC Bank. The proposal is under scrutiny by RBI and both the banks have been constantly following it up,” he said. 

Rupee Bank’s administrative body is working towards completing the statutory audit. 

DECISION AWAITED
“Under section 88 of the Cooperative Bank Act, action against  former directors and other officers of Rupee Bank for financial irregularities has been taken. A decision on this matter is expected soon,” Pandit added.

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