UWB account holders in a lurch

Most of the leading industrial units and the Kolhapur Municipal Corporation (KMC) are facing crisis due to the RBI's abrupt order to restrict the United Western Bank UWB) withdrawal by Rs 10,000 and to close the ATM centers.

The KMC is one of the clients of the UWB with deposit worth Rs 55 crore. All salaries of officials and 5,000 employees and workers are directly credited to their saving accounts in the UWB every month.

The salaries of August were deposited two days before the RBI's order and nobody could therefore withdraw the amount through the ATMs as usual.

The Menon group of industries has major transactions with the UWB's branch in the Shiroli industrial estate, the branch being located in the group's compound itself. Nearly 470 small and medium industrial units in this estate are having accounts with the UWB, which has disbursed loans of Rs 30 crores and has monthly turnover of Rs 50 crores.

Ichalkaranji municipal council (IMC) has also salary accounts with the UWB's branch at Ichalkaranji besides the deposit of more than Rs 6 crore.

While the salary accounts over the limit are blocked the deposits are safe as the ICM has received loan of Rs 8 crore and Rs 22 lakhs recently five days before the restriction order.

The fate of the post dated cheques and drafts issued from various accounts in the UWB's branch network is also in the balance.