Genco depositors to get back insured amount

Around 78,000 depositors of the General Co-operative Bank Ltd (Genco) are expected to get their insured sum of Rs one lakh from the Deposit Insurance Credit Guarantee Corporation (DICGC) of the Reserve Bank of India, eight months after a claim for insurance was filed by the bank.

State co-operative minister Bhupendrasinh Chudasama said the disbursals will begin in a fortnight.

However, depositors of Charotar Nagarik Co-operative Bank and Visnagar Nagarik Co-operative Bank will have to still wait although claims for the insured money of these banks has also been filed with the corporation.

The process of disbursing of insured sum of depositors began after a delegation of the All Gujarat Co-operative Banks Depositors' and Account Holders' Association met the apex bank officials in Mumbai.

Subsequently, chartered accountants were appointed to verify the claims made by these banks with the Credit Guarantee Corporation.

Chudasama said the corporation has assured that Genco depositors will get their insured money back as soon as possible, while attempts are still on to ensure that depositors of Charottar and Visnagar banks too get their insured sum back. "We have been assured that the depositors of the other two banks will also get their insured amount soon," said the minister.

In January this year, a delegation of the association visited Mumbai to make a representation about non-repayment of insured deposits of customers of co-operative banks in Gujarat. Several co-operative banks which have gone weak are not repaying amounts that have been insured with the Credit Guarantee Corporation.

A few days later, the corporation had appointed chartered accountants to certify the claims made by the co-operative banks that have collapsed, for payment of money insured with the corporation.

This had paved the way for depositors of General Co-operative Bank, Visnagar Nagarik Co-operative Bank and Charottar Nagarik Co-operative bank to get back money insured with the corporation.

Following the representation, Abbaji Amin Associates had been appointed to certify claims made by Genco Bank and Kanti N Patel and Associates had been appointed to certify claims of Visnagar bank.

Charottar Bank made the claim in December. General Co-operative Bank was liquidated on July 2, 2003, and its claim was filed on August 29, 2003. Visnagar Nagrik Bank was liquidated on July 11, 2003.

Claims for Charottar bank to the corporation were made in December last.

According to a new resolution brought out by the corporation, the claims have to be approved and certified by chartered accountants.

Thousands of depositors of General Co-operative Bank (Genco), Visnagar Nagrik Co-operative Bank and Charottar Co-operative Bank have been waiting for their claims to be cleared by the corporation.