MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S.PALANMANICKAM)
(a) Licence of the Samasta Nagar Co-operative Bank Limited (SNCL), Mumbai has beencancelled on September 9, 2004 and the Registrar of Co-operative Societies, Maharashtra State, Pune has appointed a Liquidator. Meanwhile, the former directors of SNCL have filed an appeal before the Appellate Authority under Section 22(5) of the Banking Regulation Act 1949(AACS) stating that they are exploring the possibility of merger of SNCL with another sound Co-operative bank.
(b) and (c): The Liquidator appointed for liquidation of SNCL has to submit a claim list of depositors to the Deposit Insurance and Credit Guarantee Corporation(DICGC) for repayment to the depositors. DICGC settles the claims on receipt of the claim list fromthe Liquidator of the concerned bank.
(d) Licence of the SNCL has been cancelled bv RBI and the bank has been prohibited from carrying on banking business.
(e) The steps to protect the small depositors have already been taken as the Liquidator hasbeen appointed, who has to submit claim list to the DICGC for settlement.
(f) The Liquidator appointed for SNCL has to dispose off the assets for realizing the bank`s dues by resorting to legal action under different Statutes that govern the recovery process, which is a time consuming exercise.
(g) The process of appointing a Chartered Accountant to certify the claim list prepared by the Liquidator has been initiated.Settlement of claims by DICGC protects the small depositors upto a maximum of Rs. 1 lakh per depositor.
