Team Herald
SANGUEM: Blame it on Reserve Bank of India directives or the Bank’s ‘inability’ to repay? Customers having their fixed deposits (FDs) in Madgaum Urban Co-operative Bank Ltd are literally made to wonder when they would get their cash back.
While eyebrows have been raised over the bank’s repayment capacity, the Managing Director and the Directors claim that the bank has enough money to pay its customers.
The customers, who have their fixed deposits in the bank, have complained that the bank is not honouring its promise of repaying them their fixed deposits as and when demanded by them.
When they approached the bank’s Sanguem branch for withdrawing their fixed deposits, the customers have been point blank informed by the bank officials of their inability to tender the fixed deposit amount.
Despite this, even if customers seek loan on their fixed deposits they are left disappointed.
Customers, who are debt-ridden and those who want to withdraw their FDs now wonder whether they will get their money back following maturity.
Speaking to Herald, Bank’s Managing Director, admitted that the Bank is not in position to either to give loan on the fixed deposits or permit their withdrawal before the maturity period.
The MD claimed the RBI has directed the bank against doing so till further orders.
The MD informed Herald that the situation has cropped up due to default in the bank’s recovery proceedings.
However, when questioned why the customers have to suffer for the bank’s fault, the managing director expressed his helplessness in the matter and blamed the RBI directives, which have forced the bank to keep on hold the customer payments despite the bank having enough money to repay them.
The customers will be permitted to withdraw their FD cash only after the maturity period.
People have been asked to produce a letter before the bank and not to resort to auto-renewals of their existing FDs.
If renewed, the customers will not be permitted to encash the fixed deposits before they mature.
