Baripada: The Baripada Urban Cooperative Bank (BUCB), whose license was cancelled by Reserve Bank of India (RBI) in 2014, has refunded Rs 9 crore to 504 of its depositors.
The BUCB refunded money to 504 persons in the first phase, from its list of customers. This was informed by the bank Thursday.
Over 76,000 people had their deposits in the bank. The Registrar of Cooperative Societies (RCS) had recently directed the Deputy Registrar of Cooperative Societies (DRCS) Baripada in writing for smooth disbursement of money to respective depositors of BUCB.
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“Gradually, the deposits of all others will be refunded within a short span of time,” the Baripada DRCS Damayanti Singh said.
Nearly 3,000 borrowers who have availed loans from the bank have to pay back over Rs 150 crore. On the basis of priority, the bank has shortlisted names of customers for refund. However, steps will be taken soon for recovery of money from the borrowers, Singh added.
Notably, the RCS was appointed as liquidator after the RBI cancelled the bank’s license in October 2014 over gross mismanagement.
The cooperative bank which was set up in 1960 was operating in Baripada with three branches at Udala, Karanjia and Rairangpur areas in Mayurbhanj district. A large number of customers of the bank had moved Orissa High Court seeking refund of their deposits.
PNN