Ever since the RBI has imposed restrictions on withdrawals from the Amanath Cooperative Bank, depositors are worried and demand their deposits back.
The bank’s NPA had an unusual uptick the RBI had to take action against the bank. The depositors can withdraw a thousand rupees once in six months.
The bank’s management has promised that they would repay the depositors by putting some immovable properties on the block. But this has not pacified the depositors as there is information the properties to be publicly sold are struck in court cases.
Sources say the bank cannot sell any properties without the permission from the RBI. If the bank is at all able to sell the properties it would have to sell them at reduced prices as the properties are in dispute. That means the bank would suffer huge losses the sources add.
According to the bank management, the bank would mobilize substantial funds through public auction of its lands and thus be able to meet its financial obligations.