Insured sum reaches Genco administrator

The Deposit Insurance Credit Guarantee Corporation (DICGC) of the Reserve Bank of India has released a draft for Rs 65.26 lakh to the General Co-operative Bank (Genco).

This has ensured that the depositors of the bank will get their insured deposits back.

Bank administrator Anil Patel said he has received the draft on Thursday and depositors of the bank will receive their insured money back within a fortnight.

Patel said, "The claims put before the corporation have been cleared. The bank has received a draft for Rs 65.26 lakh on Thursday. I will get this deposited in the bank, after which the process of payments to customers will begin. This should not take more than a fortnight."

With this development, customers of the bank will get up to Rs one lakh of their deposits.

Persons who had over Rs one lakh in their accounts when the bank collapsed will, however, just get Rs one lakh, which has been insured with the corporation.

Of the total 78,000 bank customers, there are around 68,000 who will get all their savings back, as they do not have deposits exceeding Rs one lakh.

However, the remaining 10,000 customers, who have deposits in excess of Rs one lakh in the bank, will get Rs one lakh of the total deposits.

This means that of the total Rs 122 crore worth of deposits that the bank had when it collapsed, Rs 65.26 lakh will be cleared within a fortnight.

Bank officials said the remaining amount will be cleared after the recovery of loans.

When outstanding loans are recovered, the bank has to pay off dues of the government, electricity bills and taxes before depositors can get their remaining money back.

The All Gujarat Co-operative Banks Depositors' and Account Holders' Association said it will now try to get back the monies of the depositors of Charottar Nagarik Co-operative Bank and Visnagar Nagarik Co-operative bank.

"The association had met the Reserve bank officials in Mumbai, urging them to clear the insured money claims. This is a victory for the association. We will continue to pressurise the state government and other authorities for Charottar and Visnagar bank depositors too," said Prakash Gurjar, president of the depositors' association.

The state government, through its department of co-operatives, is also taking up the matter with the corporation.

According to plans, depositors of Genco bank will get their insured sum back from about four or five branches spread across Ahmedabad.

The depositors should present their pass books and other documents.

Gurjar said the draft for the insured money will be deposited in Ahmedabad District Co-operative Bank as Genco has been barred from clearing house operation.

Genco bank had 12 branches in Ahmedabad when it collapsed.