Hundreds of depositors flocked at the Karnala Nagari Sahakari Bank (KNSB), Panvel to claim insurance amount of their deposits up to a monetary ceiling of Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). The Reserve Bank of India (RBI) had cancelled the license of the bank on August 9, 2021, for not having adequate capital and being unable to pay its present depositors in full.
The main branch of KNSB started receiving applications from depositors for insurance claims who have account with the bank. The process of the liquidation of the bank started after the RBI cancelled the license of the bank on August 9, 2021. As per the RBI decision, on liquidation, every depositor would be entitled to receive deposit insurance claim amount their deposits up to a monetary ceiling of Rs 5 lakh from DICGC.
Following a scam worth Rs 512 crores was unearthed, the RBI had imposed a moratorium on the bank operation in mid-2020 and later extended. The RBI had imposed restrictions on withdrawals of a maximum of Rs 500 per day for the next six months which was extended subsequently.
Now as per August 9 order, RBI cancelled the license and the bank was asked to not carry out any banking business further. The chairman of the bank and former MLA Vivek Patil was already arrested by the enforcement directorate. The report of the special auditor of the cooperation department of Raigad named Patil as key accused in the Rs 512,54,53,268 scam of KNSB.
Depositors have been asked to submit the insurance form with KYC to the bank for insurance claims on their deposits. The bank will send the data of depositors to the DICGC. While talking to the media, Pravin Mhatre, chief executive officer (In-charge) of the bank in Panvel said that process will take at least five to six months. “We are receiving applications from depositors with the KYC and after verifying, the data will be sent to the DICGC for further process,” said Mhatre, adding that the whole process may take five to six months. The bank has around 49,000 depositors.
