Visnagar, Charottar depositors will get money back soon: Modi

Gujarat chief minister Narendra Modi on Friday assured the depositors of Visnagar Nagrik Shahkari Bank and Charottar Co-operative Bank that they will get their money back soon.

Modi was speaking at a function to distribute the insured amount of the General Co-operative Bank (Genco) depositors in Ahmedabad.

"We thank the depositors of General Co-operative Bank for their patience. I know the problems of small depositors and the pains that they have suffered in the last few years and I stand by them. I have assured the depositors of other co-operative banks such as Visnagar and Charottar that they will get their money soon. I will take up the matter with the new government at the Centre. I hope that the new government will take the issue seriously and help the depositors with the assistance of the Reserve Bank of India," said Modi while distributing the cheques to the depositors of Genco.

The function was also attended by the agriculture and co-operation minister Bhupendrasinh Chaudsama and education minister Anandiben Patel.

Chaudsama said, "Over 95 per cent of the depositors of Genco have deposits below Rs one lakh and within one year of liquidation of the bank, we are able to provide the depositors the money insured with the Deposit Insurance and Credit Guarantee Corporation. We assure the depositors of the Visnagar and Charottar banks that the state government will make all efforts to get their money back."

Over 79,000 people, who have deposits below Rs one lakh in the co-operative bank are expected to receive around Rs 65.76 crore.

Modi distributed cheques to 11 depositors of the bank and the remaining were asked to collect the cheques from their respective branches of the bank on May 31.

Over Rs 390 crore of over 2.76 lakh depositors are blocked in Visnagar Nagrik Sahakari Bank, while over Rs 150 crore of over 1.15 lakh depositors are stuck with Charottar Co-operative bank.

Visnagar Nagrik Sahakari Bank was closed on August 8, 2002, and was liquidated on August, 2003, while Charottar Cooperative Bank was closed on January 1, 2002, and liquidated on November 2003.

Overall, there are over 28 lakh such depositors in Gujarat, whose deposits of over Rs 3,000 crore are blocked in over 34 co-operative banks which have closed down in the last two years.