In a significant move to restore public confidence in the cooperative banking system, Odisha Chief Minister Mohan Charan Majhi announced on Wednesday that his government will return the money to depositors who lost their savings following the closure of the Urban Cooperative Bank, Bhubaneswar, in 2015.

During a function to inaugurate 1,542 Multipurpose Primary Agriculture Cooperatives (MPACs), Majhi expressed his commitment to addressing the grievances of affected depositors. He emphasized that the decision to reimburse the funds is aimed at re-establishing trust in the cooperative banking framework within the state.

The Urban Cooperative Bank was forced to halt operations after the Reserve Bank of India (RBI) revoked its license due to the state government’s failure to merge it with another cooperative bank. This abrupt closure left approximately 13,797 depositors in distress, with losses amounting to nearly Rs 30 crore. Additionally, outstanding loans worth Rs 17.82 crore remained uncollected from 1,760 customers.

Majhi’s announcement is expected to bring relief to the affected depositors and marks the state government’s proactive approach towards resolving financial disputes and enhancing the stability of cooperative banks in Odisha. The Chief Minister did not specify the timeline for the reimbursement but reiterated the government’s determination to take necessary steps for the welfare of its citizens.

As the state moves forward, stakeholders in the cooperative banking sector look forward to renewed confidence and support from both the government and the community at large.