Bengaluru: Confusion prevails around National Co-operative Bank; senior citizen says this was bound to happen

A huge crowd, mostly consisting of senior citizens, had gathered outside the Banashankari branch of the National Co-operative Bank, in Bengaluru. The RBI (Reserve Bank of India) directive limiting deposit withdrawal at Rs 50,000 and Insurance claims at Rs 500,000 for a period of 6 months has left many of the account holders hanging in a state of confusion. The account holders were waiting for more than 1 hour to encash their personal cheques for which they were given an appointment at 10 am on 26th July. However, the cash for this purpose would have to be provided to them by the RBI and there was an apparent delay in this process. 

The bank manager addressed the distressed crowd. He assured them that no fraud has occurred and that they would not have to worry about their deposits. He stated that regulations were in place to accelerate the process of loan recovery. He added that if the targets for this are met within a month, the limitations on the bank would not be imposed even for the full 6-month period. 

An aggrieved senior citizen, Suresh disclosed to NewsFirst Prime, that 5 years back, their NPA was 12% and they stopped giving dividends to their customers. "I had warned them when a similar turn of events had taken place in the Sarvabhouma bank some years back, but they in turn threatened to file a complaint against me, I withdrew my deposit and urged my friends to do as well,” he said.