Tuesday, February 10, 2009

RBI puts restrictions on Memon Co-op banking operations

Memon Co-operative Bank headquartered at Mumbai banking operations have been put under restriction by the Reserve Bank of India (RBI). There were some rumors about the closure of the bank due to this on Monday the bank faced a substantial withdrawal of money by its customers. Seeing this RBI has put some restrictions on premature withdrawal of fixed deposits while all the customers of the bank will be allowed to operate their savings and current accounts, this was notified by a senior RBI official to TOI.

The RBI official remarked, "The bank is quite liquid. But there were some under-statement of financial data in the balance sheet and its net worth is not fully reflected. So we have put in some operating directions''.

Over the weekend, there were rumors that the bank was facing problems thus on Monday when bank opened for business the customers queued up at its branches to withdraw money. While confirming this Memon Co-operative Bank chairman Imran Furniturewala told to TOI that there were long queues at the bank's branches. He informed that with the help from RBI, the problem of excessive withdrawal of funds was tackled effectively and all customers were paid off.

A newswire report quoted a bank official who stated that the RBI had imposed some restrictions on banking operations which has raised rumors of a closure and the depositors began withdrawing cash.

According to a top bank official the withdrawals were provoked because its major customer base is concentrated in the lower income group with average deposit size of about Rs 8,000. Approximately 45% of the bank's deposits were in current accounts and savings accounts. The bank is carrying out its operations through 19 branches spread over Maharashtra and Gujarat and had a deposit base of Rs 345 crore.

Official informed on Monday during the day about Rs 17 crore in cash was sent to its branches to meet the emergency liquidity requirements; it received about Rs 9 crore as inward clearance.


HP said...

I'm a retired Army Officers wife & a senior citizen.I had invested a large part of my husband's pension (Rs.6 lacs) in a Memon Bank Br located close to my residence.I now find that the concerned bank is not accepting the FDs even on maturity!Your insert clearly states that the RBI restriction is on 'pre-mature' encashment of FDs.So,is the bank empowere to block my funds.RBI can deal with Memon Bank in the manner required for defaults,if any.Is it fair to hold innocent tax-payers to ransom in this abrupt manner...without even a prior caution to the general public?Please do reply.My e mail ID is 'trisec17@yahoo.co.in.'
An Anguished Citizen.

Pinky said...

Dear Sh.Alok,
I'm sure you can throw light on the correct position on the Memon Coop Bank FDs??Will we get our money,as entitled,on maturity of the FDs?How long will this 'restriction' by RBI last.I believe an Administrator is already appointed & sits in the Memon Bank HO?Is liquidation of the bank,as rumoured,likely?

Esmail said...

There were agitations in the bank covered by Channel 9 news channel. People are promised desposit on maturity. Go and participate in demonstrations and dharnas. Unless you do that bank is not going to pay you a penny


R i y a Z $ u l t a N said...
This comment has been removed by the author.
HP said...

In Feb 08,the Memon Coop Bank management tried to pacify the investors by assuring that the RBI's restrictions would be cleared in a couple of months or so!Its over 5 months now,and,its surprising as to why there is even no comment from the RBI since on the developments.The Bank's Directors continue to live in their lofty Towers & enjoy life un-hampered,whereas,RBI continues to hold the common man to ransom with this 'freeze' on their fixed deposits.Why cant we the investors form an 'association' and move the court or something-instead of having to beg the mgmt for our hard-earned monies?

salim said...

Salim Batawala

My name is Salim Moosa Batawala I have my all family fixed deposits of rupees 5000000 fifty lacs in Head Office at Mohd. ali road.

since of actual restriction I keepon calling from overseas, sometimes to Mr. Telang and some times to Branch Manager and some times to different authorities those who works several years in Bank.

These all staff's keep on promising and fake hopes me that my money is safe.

Last year before November 24, 2009 in October Mr. Telang Said money is safe we re going to Merged with other Banks, But in fact no any other Bank want to take over with such a bankrupt bank.

In the month of november end again he(Mr.Telang) and his supportive staff's said restriction is further extended until May 24, 2010
he also said we had reduced all staff and our location is great.

I think that this is all fake information they are going to wind up business and management team already laundered public money to western country. Who knows last how many years they were involve in this racket.

I don't think again Bank will stand up or Merged with other Bank unnecessary all poor people and trusts fund is swallowed by these people, If they want to merged with safe fundsimmediately other bank can take over , But here story is different every one is involve in this racket at lasts I can say good luck to everyone and pray for the future.

but after some times crime will start with the bank staff's and every one, because once Customers/people come to knows finally that totally bank is empty, and one interesting thing is that Management Team and supportive staff member the knows some influencial people that they are going to make problem, therefore banks General manager had assured them verbally and under the table that they will get full refund. Even they are bakrupt.

Shame on this Memon Bank who has looted our family money.


Mirza Mohammed said...

Dear Sir,
I am a retired person of 68 years. I have a matured fixed deposit of Rs.5 lakhs and Rs. 32,000/- in saving bank account in Memon Co-op. Bank Ltd. As I require money for my medicines and day today exxpenses, I am unable to get the same due to RBI restrictions. Please let me know how can I get this money or when RBI curb will be over. My e-mail address is mirzamohd@hotmail.com. Thanks
M. Mirza

Shakeel said...

IT has been a year since bank operations were stalled and accounts freezed. NATIONALISED BANKS ARE DOING WELL AND RBI should take action to either let the bank start ther operations or MERGE WITH OTHER BANK so that investments of ordinary people are not looted !!

salim said...

Fanuswala Shehnaz

I with my other family members had deposits 41 lacs in fixed deposits at Null Bazar Branch.

One year is passed but no results still Bank's staff member and Branch Manager said Arif sayed said no guarantee that we will get money or not i am not sure.

Now my patient is over I couldnot get sleep well and all my Jamat people and family spat on my face while saying why i deposit such a insolvent/Bankrupt bank.

I am totally mentally depressed my health condition is deteriorated while looking this situation.

A lot of staff has lost their job. the truthful thing is that previous staff had sign on loan agreement and collected without any surity and security. And now every one is resigned it means no one is working in thisbank.

those who are borrowers are enjoying, thinking that who care??

My heart is weeping why I gave money to such looted/dozzi people.

Memon mohammed

Anis said...

Looks like the matter will be long forgotten. The management had used the people's money for their own benefit and they don't wan't to clarify this to the people. The RBI is going to take years to take a decision on this as is the normal procedre with our system. Whether it's a cheating Rs. 100 or 100 million, the case wil go on and on. No decision is ever taken by the government or the judiciary even if it's on document or camera. This is INDIA meri jaan.