New Delhi, Nov 29th : , Tejasvi Surya is a Bengaluru South MP and has stated that the Narendra Modi government provided a huge reprieve by disbursing Rs 5 lakh deposit insurance to depositors at Sri Guru Raghavendra Cooperative Bank. The Deposit Insurance and Credit Guarantee Corporation paid 15,012 claims by depositors for a total of Rs 440 crore on Monday.
This week, the balance claims of approximately 6,000 depositors are being processed.
“The majority of depositors are senior citizens who are retired.
Surya stated Monday that the Union Government’s measures speak volumes about the importance that Narendra Modi government places on providing relief for the middle class.
After its fraud in presenting fake PL statements, the RBI imposed regulatory restrictions upon Sri Guru Raghavendra Cooperative Bank.
Guru Raghavendra Bank has 41,804 depositors and approximately 31,576 account holders who have deposits of up to Rs 5 Lakh.
The bank had Rs 2,403.21 crore in total deposits.However, the total advances (or the amount of loans that the bank gave out) was Rs 1,438.00 crore.Around 27 borrowers have borrowed more than Rs 927 crore, contributing to more that 70% of total NPAs at the bank.
Surya observed that “as soon as Modi’s government and the Finance Minister learned about the crisis at Sri Guru Raghavendra Bank they took multiple steps in order to provide relief for depositors who were on the brink of losing their hard-earned savings as well as increase professionalism in cooperative banking,”
The government raised the insurance coverage for depositors in 2020 from Rs 1 lakh up to Rs 5 lakh.The government also amended the Banking Regulation Act, 1949 on September 17, 2020.
This brought all cooperative banks under the control of the Reserve Bank of India.
“For the first ever time in India’s history depositors of failed cooperatives received their deposit insurance within the shortest time possible.Monday’s large disbursal covered 16 stressed banks.The transfer of money to the remaining depositors is expected to take place soon.Surya said that December 10th is the last day to submit documents for the second phase, while December 31st 2021 is the date of payment.”
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