Union Minister allays small depositors' fears

By Our Staff Reporter

HYDERABAD, OCT. 3. The Union Minister of State for Urban Development, Mr. Bandaru Dattatreya, has assured small depositors of the Krushi Bank that their interests would be protected and that he will take up their issue with the Chief Minister, Mr. N. Chandrababu Naidu.

Speaking to depositors who gave him a memorandum detailing their problems, he said that the Union Finance Minister, Mr. Yashwant Sinha, had told him that small depositors were safe as their deposits were insured. Even RBI officials were of the same view.

Mr. Dattatreya said that the State Government was yet to decide whether to liquidate or revive the bank. Once the decision was taken, then a clear picture would emerge.

The small depositors, who had come under the banner of Krushi Bank Small Depositors' Forum, had urged Mr. Dattatreya to take up their case with the Central Government. They reminded that the Gujarat Government had come to the rescue of the depositors by deciding to revive the Madhepura Mercantile Cooperative Bank, which was involved in a scam running into thousands of crores. They want similar package for Krushi Bank, which had deposits of just Rs. 35 crores.

They said it would take at least three to four years for returning their insured amounts, given the procedures involved in it, and wanted the Minister to see that the money was returned as early as possible.

The depositors were also quite angry with the attitude of the State Government for the delay in arresting the Krushi Bank chairman, Mr. Venkateshwar Rao, as well as not responding to their appeals for an expeditious solution.

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