Govt to Refund Bhubaneswar Cooperative Bank Deposits Soon

Bhubaneswar: The Odisha government led by Chief Minister Mohan Charan Majhi, decided to refund deposits of the people who had their savings in the Bhubaneswar Cooperative Bank (Urban cooperative bank) which was shut down in 2015.

In 2015, the Bhubaneswar Cooperative Bank, was shut down after RBI cancelled its license as the government failed to merge it with some other co-operative bank. CM Majhi announced this while launching 1,542 multipurpose Primary Agriculture Cooperatives (mPACs). The government took the decision to refund deposits to re-build the trust of the people of Odisha in the cooperative banking system.

This comes as a good news for the 13,797 depositors who lost around Rs 30 crore. The outstanding loan amount stands at Rs 17.82 crore from 1,760 customers. CM Majhi launched 1542 at the Lok Seva Bhawan convention center. It is worth noting that while there are a total of 2711 PACS (PACS) in the state, the state government has launched 1542 new Multipurpose PACS (MPACS). With this, the total number of PACS in the state has reached 4253.

The CM said efforts were on to restore people’s trust in cooperatives and make them a major engine of rural economic development.