Odisha Government Initiates Depositor Refund Process for Defunct Urban Co-operative Banks

The Odisha government has started refunding depositors of the Bhubaneswar Urban Co-operative Bank, which closed in 2015. Chief Minister Mohan Charan Majhi initiated the process, refunding Rs 2.80 crore to 117 depositors on the first day. Ultimately, Rs 20.96 crore will be returned to 9,537 depositors, with ongoing efforts for more refunds.

The Odisha government has launched a significant initiative to refund money to those who had deposits with the Bhubaneswar Urban Co-operative Bank, shuttered in 2015. The closure was attributed to complete mismanagement, impacting many investors.

On Monday, Chief Minister Mohan Charan Majhi spearheaded the refund process by returning Rs 2.80 crore to 117 depositors on its inaugural day, according to an official release from the Chief Minister's Office. The chief minister ceremoniously handed over cheques to nine depositors during an event at Lok Seva Bhawan.

Further plans include reimbursing funds to depositors of Dhenkanal, Chhatrapur, Aska and Bhanjanagar Urban Co-operative Banks, with more than Rs 6 crore allotted for 17,859 depositors. Ultimately, Rs 20.96 crore will be refunded to 9,537 depositors of the Bhubaneswar bank, while efforts continue to return remaining depositor funds.

(With inputs from agencies.)