Dehradun Bank Crisis: RBI Restrictions Spark Depositor Outcry Over Rs 124 Crore Stuck
In a significant development, account holders of Urban Co-operative Bank Ltd in Dehradun held a press conference and engaged in heated arguments with bank authorities on Wednesday. This confrontation followed the Reserve Bank of India's imposition of stringent regulatory restrictions on the bank, citing financial anomalies in entries dating back to the 2013–14 period.
RBI's Six-Month Withdrawal Ban and Its Impact
The RBI's regional office has enforced a ban on withdrawals from savings and current accounts for a duration of six months, effective from February 10. This drastic measure has left approximately 9,000 customers with deposits totaling Rs 124 crore trapped in the bank. Many of these depositors, including contractors who work closely with the Dehradun Municipal Corporation, have expressed severe distress, stating that the restriction is critically hampering their ongoing projects and timely payments.
Contractor Mukesh Sharma highlighted the gravity of the situation, emphasizing that depositors' lifetime savings are now at significant risk. He raised pointed questions about how such financial irregularities could remain undetected for over a decade, despite the bank undergoing regular audits. Sharma issued a stern warning, indicating that depositors are prepared to stage protests if swift and decisive action is not taken. He also demanded strict accountability and punitive measures against those responsible for the lapses.
Bank's Response and Upcoming Meeting
In response to the crisis, Bank Chairman Mayank Mamgain provided an explanation, noting that the anomalies were initially identified during an internal review. According to protocol, these findings were promptly reported to the RBI. A subsequent forensic audit confirmed the existence of these irregularities, Mamgain stated. He added that the bank is currently awaiting further directives from the RBI to navigate the situation.
Mamgain also mentioned that the concerned minister and the chief minister would be approached for intervention, seeking governmental support to resolve the issue. To address the mounting concerns, another meeting between the aggrieved depositors and bank officials has been scheduled for February 23, aiming to discuss potential solutions and next steps.
Broader Implications and Calls for Action
This incident underscores broader issues within the cooperative banking sector, particularly regarding regulatory oversight and financial transparency. The prolonged nature of the anomalies, spanning nearly a decade, raises serious questions about audit efficacy and internal controls. Depositors' frustrations are palpable, as they face not only financial uncertainty but also operational disruptions in their professional lives.
The situation calls for urgent intervention from regulatory bodies and government authorities to safeguard depositor interests and restore confidence in the banking system. As the February 23 meeting approaches, all eyes are on the outcomes, with hopes for a resolution that ensures accountability and protects the hard-earned savings of thousands of customers.
