Wait gets longer for Charottar, Visnagar bank depositors

Depositors of Genco Bank have started getting back their insured money

Depositors of Visnagar Nagarik Sahakari Bank and Charottar Nagarik Sahakari Bank are still awaiting release of their insured money from the Deposit Insurance Credit Guarantee Corporation (DICGC).

Depositors of General Co-operative Bank (Genco) have begun receiving the insured component of their money back from the Credit Guarantee Corporation.

While the state government officials say they are trying to get the insured money for these two banks, the association of depositors says the government is concentrating on one bank at a time and even liquidators appointed for the Visnagar and Charottar Banks are not functioning as efficiently as they should.

As far as Visnagar Nagarik Sahakari Bank is concerned, the DICGC had appointed Kanti Patel and Associates to certify claims of the bank almost simultaneously with Genco Bank.

"The state government is taking up one bank at a time, which should not be the case. I believe that the liquidators appointed for these banks must act faster," said Prakash Gurjar, president of the All Gujarat Co-operative Banks Depositors' and Account Holders' Association, which has been campaigning for speedy disbursal of DICGC claim money.

The number of depositors of Visnagar Nagarik Sahakari Bank is 2.76 lakh and the insured amount with the DICGA is Rs 291 crore. Visnagar Nagarik Bank was liquidated on July 11, 2003, and it filed claims with the corporation five months back, the association said. Gurjar, however, said with the central government budget coming up, claims are likely to be made only after the budget is over.

As far as the insured money of Charottar Bank depositors is concerned, the claim with the corporation was made in December 2003. Normally, it takes 60 to 90 days to settle claims. So depositors of this bank should have got their insured amount back by March end. The number of depositors is around 1.50 lakh and the sum insured with the DICGA is Rs 147 crore, the association said.

Minister of state for co-operatives Bhupendrasinh Chudasama, however, assured that depositors of both Visnagar Nagarik Sahakari Bank and Charottar Nagarik Sahakari Bank will get their money soon.

"We have been following up the claims of Visnagar and Charottar Banks regularly with the DICGC," said Chudasama. Asked when these claims are likely to be made, the minister said depositors of both these banks are likely to get their insured money back within two months.

Depositors of Genco Bank have begun getting back their insured money. The claims are being settled in a phased manner. Over 70 per cent of Genco Bank depositors have deposits of less than Rs one lakh, which are insured. The DICGC cleared Rs 65.26 lakh recently, which is being returned to depositors.