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Allahabad Bank on Thursday said it awaited Reserve Bank of India (RBI)’s permission for collecting public deposits on behalf of the West Bengal government.
On Wednesday, it had said West Bengal Infrastructure Development Finance Corporation (WBIDFC), a financial services company promoted by the state government, had named it as one of the bankers for acceptance of deposits under their Safe Savings Scheme, without its prior consent. The bank had said it would not accept the role.
“Such schemes have to be in tandem with RBI’s guidelines and we need consent from the central bank before participating in the programme. We have sought a clarification from RBI and are awaiting a response. We had requested the government not to include our name in the list of bankers till the clarification comes. But it went ahead and mentioned our name in the list. Hence, we had to issue a statement,” said Shubhalakshmi Panse, chairperson and managing director.
Panse said the bank was not sure if a non-banking finance company such as WBIDFC could raise public deposits through banks.
“We do not know what happens to the deposit because it will not remain with us. Hence, we need RBI’s permission,” she said.
WBIDFC had issued an advertisement on the savings scheme, naming Allahabad Bank, State Bank of India, UCO Bank and United Bank of India as its bankers. The advertisement invited application money from the general public, requesting them to deposit it at any branch of these four banks in West Bengal.
According to the advertisement, individuals can participate in the programme with a minimum amount of Rs 1,000. The money would be kept for 12-60 months and earn nine to 9.25 per cent annual interest.
The scheme was proposed by Chief Minister Mamata Banerjee soon after the Saradha collective investment scam came to light. The objective was to offer a secured savings option to the rural population, often cheated by swindlers floating illegal deposit schemes.
WBIDFC officials had earlier said their Safe Savings Scheme had RBI approval and they were in the process of launching the deposit programme.
