Dr Borgaonkar
Is it reasonable and bound to policy of RBI that if a co operative bank is in bad shape due to its administration and if to be merged in a better bank the account holders and depositors have to bear the losses in proportion with the losses? RBI is responsible for the health of all the banks and also cooperative bank.
Please give your opinion as if it is followed depositors and account holders will lose faith on all the cooperatives.
I C Naik
Faith in cooperative banks is already shaken. Reserve Bank is not responsible for losses of Cooperatives; members are responsible. Unless you are confident of management capabilities and integrity it is better to keep a distance. Your money will be safe.