Modi urges Centre to hike limit of claim in co-operative banks

Narendra Modi urged Centre to raise the limit of depositors claim from rupees one to five lakh, for co-operative banks going into liquidation.

Last Updated: Sep 05, 2010, 23:45 PM IST

Ahmedabad: Gujarat Chief Minister Narendra Modi today urged the Centre to raise the limit of depositors claim from rupees one to five lakh, for co-operative banks
going into liquidation.

"In the past we have written several letters to the Centre for raising the limit of depositors claim from one to five lakh in order to ensure justice to depositors, but to no avail," Gujarat CM Narendra Modi said, while speaking at a function of the state co-operative department.

He said the move if implemented will help co-operative sector banks of Gujarat regain the confidence of investors and progress at fast pace. According to Modi, over Rs 1,578 crore of 15.5 lakh depositors was languishing in 77 co-operative banks of the
state which had gone into liquidation.

"Of the Rs 1,578 crore, nearly 90 per cent has been returned to depositors, due to pro-active measures initiated by the state government," Modi said. With these steps, Modi said the deposits in urban co-operative banks of the state had touched Rs 17,000 crore
mark.
The CM disbursed Rs 70.40 crore to 81,658 depositors of two urban co-operative banks, including Rs 44.57 crore to 36,852 depositors of People`s Co-operative Bank, Ahmedabad and Rs 26.32 crore to 44,617 depositors of Mahila Nagrik Sahkari Bank of Surat.Earlier, both these banks had gone into liquidation.

PTI