CCI delegation calls on RBI RD

*Demands roll back of restrictions on CCBL

Excelsior Correspondent

JAMMU, Sept 2: A delegation of the Office Bearers of Chamber of Commerce & Industry headed by its president Arun Gupta called on the Regional Director, RBI, Prabhakar Jha.

During the meeting Arun Gupta stated that Chamber of Commerce & Industry, Jammu is the only elected and representative body of Trade & Industry. The Chamber chief expressed his displeasure on the sudden restrictions imposed on The Citizens Coop. Bank Ltd. due to which the customers are allowed to withdraw only Rs 1.25 lakhs during a period of six months. This has created a sense of insecurity among the business community who are operating their current accounts as well as have availed CC limit facility from The Citizens Coop. Bank. All of a sudden their transactions have been stopped by this action of RBI. Gupta requested the RBI authorities to find out an amicable solution so that their business does not suffer.

Gupta further stated that a large number of ordinary customers have deposited their hard-earned money with the bank for essential requirements such as medical treatment, education, household expenses, business needs and the marriage of their children. The restricted withdrawal facility is causing considerable hardship to depositors who are unable to access their own legitimately deposited funds when required.

While reacting on the issues raised in the meeting, the Regional Director conveyed that this decision of imposing restrictions on the working of The Citizens Cooperative Bank has been taken by the Head Office of RBI and we are forced to take this harsh step as the liabilities of the bank have increased. He said that though the present Bank management has worked with honesty due to which the NPAs have reduced, but since the liabilities have increased, we were forced to take this stern action. He also said that the parties who have deposited above five lakhs should approach the Bank management, as their amount is insured and they will get Rs 5.00 lakhs of the total amount whichever is less in the 1st instance.

Regarding the concerns raised by CCI about the marriage of the children's, higher education and health related problems of the depositors, the Regional Director clearly stated that they should approach RBI through Bank Management, RBI shall forward their case to higher authorities for amicable solution.

He further said that in case during the period of six months the liability part decreases, there is every possibility that the bank shall revive.

Senior office bearers- Anil Gupta, Rajeev Gupta, Manish Gupta, Rajesh Gupta also accompanied.