RESERVE BANK OF INDIA vs ESHWARAPPA

HEARD the learned counsel for the petitioner. In our view, impugned order passed by the State Commission does not call for any interference.

FROM the record, it appears that because of the directions issued by the Reserve Bank of India (RBI), the Bank is not in a position to refund the amount payable on or after the date of maturity of the FDRs. Most of the depositors are from lower middle class who had deposited their hard earned money for getting the higher rate of interest from the Bank. After passing of the Order under Section 35A of the Banking Regulations Act, there is total negligence on the part of the officers of the Bank in not ensuring that appropriate action is being taken either for winding up of the bank or for withdrawing its order. Such delay causes lot of harassment to the depositors. The depositors are required to produce on record medical certificates and medical bills for getting the money released. The concerned officers discharge their duty as usual with utmost delay and without any concern for the suffering of employees/poor persons who have deposited their life savings with the Bank. If prompt action is taken, at least the amount up to Rs.1 lakh, payable by the General Insurance Corporation, can be released in favour of the depositors on the basis of statutory insurance cover, or, in the alternative, concerned bank can restart its functioning.

IT appears that the officers of RBI are not in a position to curtail the delay for one or other reason. In such a situation, for getting relief, consumers all over the country are knocking the doors of the consumer fora because they are hard-pressed. However, to find out a solution, fix the matter for final disposal on 29th October 2007 at 2.30 PM.