Mmcb Begins To Repay In Small Lots

The agonising wait of the depositors and account-holders of the crisis-hit Madhavpura Mercantile Cooperative Bank (MMCB) ended today as the bank started repayment of deposits to the tune of Rs 5,000 at all its 28 branches, including 23 in Ahmedabad, 2 in Mumbai and one each in Surat, Rajkot and Vadodara.

Long queues of depositors and account holders were seen outside most of the branches in the city right from 10.30 am today morning though the repayment process commenced only at 12.39 pm.

Speaking to Business Standard at 7.45 pm today, MMCB chief executive officer (CEO) Rajni Shah said that the 23 MMCB branches in Ahmedabad had till then totally paid out more than Rs 1 crore to around 5,500 depositors.

 

"As there are queues of depositors at some of our branches even now, we have decided to continue the repayment work at these specific branches till 8.30 pm today," he added.

As per the repayment schedule worked out by MMCB, a maximum amount of Rs 5,000 would be paid out on September 18 and 19.

This limit would be increased to Rs 10,000 on September 21 and 22. And on September 23 and 24, the repayment would be to the tune of Rs 15,000. On the subsequent days this limit would be raised to Rs 20,000, Rs 25,000 and Rs 50,00 and Rs 1 lakh, respectively.

While an amount of up to Rs 5,000 would be paid in cash, those exceeding Rs 5,000 would be paid vide cheques drawn on Ahmedabad District Cooperative Bank (ADCB).

Meanwhile, ADCB chairman Amit Shah, who as a member of the MMCB revival committee played an active role in formulating the MMCB rehabilitation package, said that some anti-social elements have started spreading rumours that the repayment process at MMCB would not continue beyond two days.

Emphasising that they are baseless, he issued a written appeal to ignore such rumours.

Revealing that he had also received information that some people were collecting money from depositors and account holders of MMCB saying that these amounts are towards expenses incurred towards working out the revival package, Shah said that no depositor or account holder need to pay any money to any sources to get their deposits redeemed at MMCB.