The Nashik District Central Co-operative (NDCC) bank has begun seizing tractors from farmers who have failed to repay their loans.
The bank has an outstanding due of Rs.1150 crore and has begun collecting debts from customers who have been delinquent in repaying their loans for past several years.
On Friday, several farmers protested as the bank auctioned off seized tractors on the premises of its headquarters in the city's Dwarka district.
A police crew rushed to the scene and detained six farmers. The protesters were taken to a nearby police station and later released. Police sources said they released the farmers without registering any offence against them.
According to an NDCC bank official, a recovery drive has begun. "We seized 250 tractors from farmers who failed to repay their debts. We have already begun the process of auctioning off 113 tractors. The bank auctioned off 16 tractors in the first phase on Friday, but two farmers paid their dues and got the possession of their vehicles,” the official said.
"However, 14 tractors were auctioned off, and the bank received an amount of Rs.51 lakh," he added.
RBI cancels license of co-operative bank.
Meanwhile, Nashik-based Independence Co-operative Bank Ltd. license has been cancelled by the Reserve Bank of India (RBI). The RBI stated in a statement that the bank lacks enough capital and earning potential.
The bank has failed to comply with requirement of various sections of the Banking Regulation Act, 1949. The bank in its current financial position would be unable to pay the money to its depositors and public interest would be adversely affected if the bank is allowed to carry on with the business.
About Nashik District Central Co-operative (NDCC) Bank
Nashik District Great Enthusiastic person Karmavir Bhausaheb Hire, Bhausaheb Hire is Founder of NASHIK DISTRICT CENTRAL CO-OP BANK LTD. since 1955. Bhausaheb Hire has been involved in the cause of social and economic upliftment of farmers.
The district had been particularly active in the liberation movement therefore some leaders initiated their Struggle to attain Economic Freedom for the rural ordinary people in the area, allowing them to achieve overall growth. Today it has emerged as a leading name in Co-operative Banking.
