Thrissur: Investors in Karuvannur Cooperative Bank can expect to start receiving their funds as part of the government’s new package to address the recent scam. While a package of Rs. 50 crore was announced, the bank currently holds only Rs. 17.4 crore, leaving some investors concerned about the sufficiency of the funds to cover their losses. However, the bank has assured investors that the remaining amount will be made available soon.
In addition to receiving their money, investors have the option to reinvest it in the bank itself. The bank plans to recover the necessary funds through the collection of outstanding loans and collaboration with organizations like the Consortium of Cooperatives and the Cooperative Development Welfare Fund Board.
Depositors with funds ranging from Rs. 50,000 to Rs. 1 lakh, whose deposit periods have matured, will be able to withdraw their funds. For fixed deposits of up to Rs. 50,000, withdrawals will be permitted starting from November 11. After November 20, withdrawals of up to Rs. 50,000 will be allowed from savings accounts. The bank has committed to fully refunding 21,190 savings depositors and providing partial refunds to 2,448 depositors.
Effective from December 1, matured deposits exceeding Rs. 1 lakh can be renewed with a fixed percentage of the principal amount plus interest. This package will facilitate full withdrawals for 21,190 individuals and partial withdrawals for 2,448 depositors.
The bank’s administrative committee has maintained that only irregularities totaling 103 crore rupees occurred within the Karuvannur Co-operative Bank, dismissing other claims as media fabrications. They assert that substantial fraud was executed through falsified documents and argue that the takeover of documents by the Enforcement Directorate during their investigation put loan repayments at risk.
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