Odisha news: Bhubaneswar, (Reporterspen), Dec 26: The Odisha government has announced a plan to refund depositors of the now-defunct Urban Cooperative Bank Limited in Bhubaneswar. Chief Minister Mohan Majhi made this announcement during the launch of 1,542 Multipurpose Primary Agriculture Cooperatives (MPACs), emphasizing the government’s commitment to restoring public trust in the cooperative banking system.
The Urban Cooperative Bank in Bhubaneswar was granted a license by the Reserve Bank of India (RBI) on September 7, 1987, to operate as a banking institution. However, by 2003, the bank began to experience significant financial difficulties. Despite the government’s efforts to revive it by infusing Rs 6 crore in 2006, the situation did not improve.
The bank ceased operations in 2015 after the RBI revoked its license, following an unsuccessful attempt to merge with Pune’s Cosmos Cooperative Bank. This closure left 13,797 depositors with losses totaling approximately Rs 30 crore, while loans amounting to Rs 17.82 crore remained uncollected from 1,760 customers.
In addition to the refund announcement, the Chief Minister stated that the government plans to implement 54 initiatives in the cooperative sector. These initiatives will include the introduction of model by-laws to diversify Primary Agriculture Cooperatives, enhancements through computerization, and the establishment of public medicine centers, common service centers, and agricultural service centers, among other projects.
