RBI unveils steps to protect interest of depositors

By Our Staff Reporter

HYDERABAD, AUG. 14. The trouble-torn city-based Krushi Cooperative Urban Bank, which remained closed for two days, opened on Tuesday. There were, however, no cash transactions. The bank, situated in the dominantly trading area of Ranigunj, reportedly was trying to provide information as directed by the Reserve Bank of India.

Meanwhile, the RBI took drastic steps to protect the interest of the depositors by asking the Andhra Pradesh Registrar of Cooperative Societies to take over the management of the Krushi Bank, and to ensure that the board of directors do not interfere with its functioning. Sources said that the Registrar had been asked to bar them from holding positions in cooperative bodies. The RBI had also asked the Registrar of Cooperative Societies to consider liquidation or merger of the bank with other cooperative banks.

However, the Registrar of Cooperative Societies was away on election duty and is likely to be away for another two days. Other top officials in the Registrar's office were not available for comment.

On the other hand, the police tried in vain today also to get hold of some directors. None of the 10 directors or the Chairman of the Bank was traceable. Anxious depositors continued to throng the bank's only office in Ranigung hoping for some assurance that their deposits were safe.

The bank manager, Mr. P.S. Murthy, was, however, said to be in the bank trying to collect data required by the RBI, with the police standing guard outside. Repeated calls to the bank on the land lines or on the cell phone of Mr. Murthy failed to elicit any response.

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