By Vijay Oswal
One of our readers Mr Vijay Oswal has written a thought-provoking comment on Rupee Bank crisis. We reproduce below his reaction for readers’ benefit-Editor
This is in Ref. With the article in the Times Of India Dated 4th September 2014 “RBI norms May Hit Co-op Depositors.”
Amusing as it may sound but this headline has successfully hit the millions of depositors and has safeguarded the interests of defaulters! The big question is we rather be a defaulter than a depositor?
As per the RBI guidelines the acquiring bank can forego proportional liabilities from the sick entity. A clear statement that depositors stand to lose their money without their consent in a situation if the co-op bank defaults. It’s a crude shock to depositors who have put in not just their hard earned money but also entrusted their faith in an institute that is supposed to be backed by the RBI. It’s like giving a free hold license to drive without licence or giving permission to copy in a classroom.
As depositors our hard earned money cannot be forgone for somebody else’s mishap. These banks have given loans to undeserving individuals and organizations where-in it’s a clear indication that they have unscrupulous intentions. The Top management of these banks have committed serious offence by granting undeserving loans which has directly Hit the depositors. Why should we pay for something that we are not responsible? The RBI cannot give away our money as if it is charitable money.
When we apply for a loan we accept the terms and conditions proactively and are ready to face the consequences for a default. In this case when we have not signed any such clause then how can the RBI decide to take away our money after the damage is done? It’s a clear case of conflict of interests where the depositors money is jeopardised to safe guard other interests.
Be it co-operative or nationalised, what’s the point in opening a bank account if the money is not safe and secure considering both are in the business only after the RBI’s approval. This is where we are feeding corruption and heading to a point of no return. As tax payers we feel betrayed. Considering the above example, then every defaulter of a bank should be given the levy to forego his liability. How can there be a different law for institute vs an individual!
The article also states “In its latest circular, the RBI has said that under the new guidelines, the acquiring bank should not incur any loss arising out of the said merger or transfer of assets and liabilities of cooperative banks”
These guidelines should have been formed beforehand and not after the damage is done. As a depositor we feel we have no rights over our own money. The govt expects us to pay the taxes irrespective of whether we have the liquidity. Just as it’s a mandate to pay the taxes because that’s our liability similarly the financial institutes should also be liable to pay.
A depositor’s money is a right and not an obligation.
It is very true which Mr Vijay has mentioned.This is just like making the sants victims and letting free the defaulters. Do RBI will feel its responsibility in solving this issue and see that honoest depositors will be releaved from this deadlock which is created by RBI since 2 years. Hope Indian government will look in to the matter so that cooperatives can be saved from the clutches of currupt politicians.
Thank you Mr. Vijay. I have sent message to RBI with same meaning long back, but no action.
Why depositors/investors are being punished for their hard earned money? Why RBI / Govt. / Rupee Bank is not taking action against defaulters & releave depositors money? Whom they are protecting .. defaulters.
Also notified the comments to Sakal news paper, but nothing happens….
It seems RBI/Govt./Rupee Bank are in favor of defaulters not investors.
If the Bank has advanced loans to defaulters say 10 years ago and they have become bad assets then how can they accept deposits from customers AFTER the old loans have become bad assets?
This means that the money that the Bank cannot recover from defaulters is being collected from new deposits. This is not right.
It is very surprising that RBI has taken a decision favouring the defaulters and let go our hard earned money be enjoyed by crooks for their selfish interest. The RBI should take the
defaulters to task and see that they pay back their loans by hook or by crook. The very purpose of the bank lending money to such defaulters shows that the bank is hand in glove with the defaulters, hence that bank authorities alongwith the defaulters should be punished and forced to return the loans taken
Now since Mr Patil an honoest RSS minister has taken oth of cooperative dept, first of all we would like him to act on the mess created by administrators of Rupee co operative bank in which all the hard earned money of citizens are blocked due to miss deeds of currupt politicians. These politicians were using the co operative bank money as their own property putting the innocent account holders and depositors in soup. Hope now being an honest Minister now he will do justice in this regards. Request to Mr Patil that make a system that in future no politician can utilise the poor invester’s money in this way. It is since 2 years now, not a single Rupee can be utilised by the account holder for their emergencies because of stringent restrictions by RBI. What a irony that the culprits are moving and enjoying at the cost of honest investers even when regular audits are done through RBI to protect the interests of investers and account holders.Hope that justice will be provided to investers and depositors and all their hard earned money will be back to them with all the interest due to him.
I red all the comments of the alert people. Thanks to all of them. I am of the opinion why Rupee co-Op Bank administration did this mess? Or the politicians put the pressure on the admin and stole the millions of depositors hard earn money? why the top management not declaring the names of those of thieving basters or prosecuting them. Till this stage come was RBI sleeping? If RBI fail to take action in time then RBI must pay to all depositors their money.