RBI curbs on Rupee Bank may hit staff hard

Incidentally,the salaries of all the bank employees are credited to their accounts in the bank itself. This would mean that in spite of them getting their salaries,the employees would be able to withdraw only Rs 1,000 once from their accounts in the next six months.

This situation is due to action taken by the Reserve Bank of India (RBI) on the Rupee Bank under Section 35 (A) of the Banking Regulation Act,1949. Action under this section translates into account holders being able to withdraw only Rs 1,000 once during the next six months. This action was taken in view of the poor financial health of the bank,with RBI putting the restriction by dismissing the board of directors of the bank and appointing joint director (sugar) Sureshkumar Bhosale and Vidya Sahakari Bank chairman Vidyadhar Anaskar as the administrators of the bank.

Apparently,the bank has bad loans to the tune of Rs 350 crores.

While the RBI action has already struck panic among the more than seven lakh depositors of the bank,it has put additional burden on the employees of the bank.

“As this was convenient for us,we maintained our account in the bank and had our fixed deposits and other financial instruments in this bank. But now we can’t access our hard-earned money in any manner,” said a senior employee on condition of anonymity.

Another employee stated that the restrictions were imposed very suddenly and they did not have time to make alternative financial arrangements. “Loan re-payments,purchase of houses and functions have been put on hold for many of us,” said another employee.

Speaking to Newsline,Bhosale said that as the restrictions are for a short period of time,the bank employees would be able to access their money once the six-month period is over. “At present,we are studying the books and due to complications involved in the core banking issues,we are following up the matter in a cautious manner,” he said.

Meanwhile,Rupee Bank personnel manager Pravin Joshi said they are working on a mechanism to ensure salaries are given in full and on time to the employees. “We are trying to see that the salaries are disbursed from different banks from the month of April,” he said.