Administrator urges RBI to merge Rupee Bank instead of liquidation

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The Rupee Bank administrator has asked RBI Deputy Governor Rajeshwar Rao that liquidating the bank is not the solution. “Instead, we call for the merger of Rupee Bank with other strong banks and the protection of depositors who have more than ??five lakh of deposits, ”he said

Rupee Co-op Bank CA Sudhir Pandit administrator urged the Reserve Bank of India (RBI) to allow the bank to merge with another strong financial lender. Union Minister of State for Finance and Banking Bhagwat Karad, who chaired the meeting, called on the authorities for a satisfactory resolution from the bank.

Pandit asked RBI Deputy Governor Rajeshwar Rao that liquidating the bank is not the solution. “Instead, we call for the merger of Rupee Bank with other strong banks and the protection of depositors who have more than ??five lakh of deposits, ”he said.

He brought to the attention of the higher authorities of the RBI that it is very necessary to protect the interests of high value depositors who are not insured at par with insured depositors.

“If the bank is put into liquidation, the holders having more than ??five lakh deposits and the majority of which are seniors can lose almost 65% of their deposits, ”he said.

Karad also advised the authorities for a satisfactory resolution of the bank. Pandit was hopeful about the outcome of the meeting. He also said that Karad assured to pursue the case.

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