MUMBAI: Over 3,000 depositors gathered outside the Veershaiva Credit Co-operative Bank at Nagardas Road at Andheri east early on Thursday after the Reserve Bank of India (RBI) took over the bank's administration. Within half an hour of the bank opening on Thursday morning, and after few account holders were denied payments, the crowd started abusing the bank officials. By 11 am, more than 3,000 depositors , among them housewives, senior citizens, labourers and domestic servants, were seen waiting in queue. An RBI notice pasted in the bank stated that the bank could not carry out any transactions. "Today morning, when I went to withdraw Rs 25,000 for my son's college admission, they gave me only Rs 1,000 saying the bank is under the RBI administrator and its accounts have been frozen. Now I don't know what I will do. Where will I arrange money," asked Ravina Chavan. Sources said that the angry mob then abused the bank officials and tried to force their way into the bank. "Fearing being attacked by the crowd, some of the bank officials sneaked out through the rear door," a source said. By 12 pm, the police arrived. A depositor, Ranjana Baria said, "I had saved Rs 2.5 lakh in the last five years by washing vessels in other people's houses. My life is ruined. I have small children to take care of. Where will I go now?" Sources said that the bank collapsed due to various reasons , including overtrading, non-performing assets and sanctioning loans to various companies without any securities. Two groups have been fighting for control over the bank, a source said. It appears that the RBI will appoint an administrator and carry out an audit. "There are around two dozen companies which were given huge loans without any security," said a source.
TOI
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