A'bad queues up outside Memon Bank after rumours

Serpentine queues were seen outside the branch of Memon Co-Operative Bank here today, following rumours that the Mumbai-headquartered bank would shut operations due to a supposed 'cash crunch'.

According to the bank's manager, Abdul Razak Hasmani, the Reserve Bank of India has imposed some embargo on banking operations due to which rumours of a closure were doing the rounds and depositors began withdrawing cash.

"We have assured investors that we will pay back the amount they have invested with us," Hasmani said.

"I have withdrawn my entire money after rumours since Saturday that the bank would wind up operations," Rangrez Altaf, a depositor, who had been standing in the queue since early morning, said.

The bank manager has assured depositors that they would get back their money, he said, adding the bank has been repaying investors since morning.

"From the past three days rumours are rife that the bank would close operations. So I have come to withdraw my money," Mohammed Rafiq, another depositor, said.

Depositors have been making a beeline for both branches of the bank in the city and police personnel had to be deployed for security reasons.

However, neither the regional RBI nor the state registrar of co-operative society confirmed that the bank has been served a notice under Section 35-A of Indian Banking Regulation Act, under which banking operations are freezed.