Depositors of Pen Urban Co-Op Bank Await Compensation Amid Legal Hurdles

The Bank Depositors Protection & Welfare Society (BDPWS) has called for intervention by Finance Minister Nirmala Sitharaman and the RBI to expedite compensation for Pen Urban Cooperative Bank depositors. Despite amendments to the DICGC Act, procedural obstacles have delayed payments, affecting predominantly vulnerable depositors.

The Bank Depositors Protection & Welfare Society (BDPWS) has urgently petitioned Union Finance Minister Nirmala Sitharaman and the Reserve Bank of India (RBI), highlighting procedural delays impeding compensation under the amended DICGC Act.

Secretary Vishwas Utagi stresses the plight of Pen Urban Co-Op Bank's depositors, predominantly holding deposits under Rs 5 lakh, yet still awaiting relief.

The Bombay High Court's intervention has prolonged uncertainty, affecting many financially vulnerable and elderly individuals. Amendments intended to ensure payouts within 90 days remain unrealized, underscoring the need for immediate action.

(With inputs from agencies.)