JAMMU, Sep 2: A delegation of office bearers of the Chamber of Commerce & Industry (CCI), Jammu, led by its President Arun Gupta, called on Prabhakar Jha, Regional Director, Reserve Bank of India (RBI), and raised concerns over the restrictions imposed on the operations of The Citizens Cooperative Bank Ltd.
Arun Gupta welcomed Prabhakar Jha on assuming charge as Regional Director, RBI, and conveyed his best wishes for a successful tenure. Ram Sarup, DGM, and Gurdeep Kaur, AGM, were also present during the meeting.
Gupta said the Chamber is the elected and representative body of the trade and industry in Jammu and regularly takes up grievances of traders, industrialists and the general public. He expressed concern over the sudden restrictions imposed on The Citizens Cooperative Bank, under which customers have reportedly been permitted to withdraw only Rs 1.25 lakh during a period of six months.
He said the restrictions have created a sense of insecurity among members of the business community who maintain current accounts and have availed themselves of cash credit facilities from the bank. According to him, the restrictions have disrupted their financial transactions and could adversely affect business operations. He urged the RBI authorities to find an amicable solution so that businesses and customers do not suffer.
Gupta also highlighted the difficulties being faced by ordinary depositors who have placed their hard-earned money with the bank for essential requirements, including medical treatment, education, household expenses, business needs and marriages of their children. He said the restricted withdrawal facility was causing considerable hardship to depositors who were unable to access their legitimately deposited funds when required.
Responding to the concerns, Prabhakar Jha said the decision to impose restrictions on the working of The Citizens Cooperative Bank had been taken by the RBI Head Office, and the measure was necessitated by an increase in the bank’s liabilities. He, however, acknowledged that the present bank management had worked honestly and that the bank’s NPAs had reduced.
Jha further stated that depositors whose deposits exceed Rs 5 lakh should approach the bank management, explaining that their deposits are insured and they would receive up to Rs 5 lakh, whichever is less, in the first instance, as per the applicable process.
On concerns relating to funds required for children’s marriages, higher education and health-related emergencies, the Regional Director advised depositors to approach the RBI through the bank management. He said such cases could be forwarded by RBI to the higher authorities for consideration and an amicable solution.
Jha also stated that if the bank’s liability position improves during the six-month period, there remains a possibility of the restrictions being reviewed and the bank’s operations being revived.
The delegation comprised Anil Gupta, Senior Vice President; Rajeev Gupta, Junior Vice President; Manish Gupta, Secretary General; and Rajesh Gupta, Secretary, besides the CCI President.