JAMMU, OCT 5: Mounting distress among depositors of Citizen Cooperative Bank came into sharp focus on Monday as a delegation of account holders approached the Chamber of Commerce and Industry (CCI), Jammu, seeking urgent intervention over restrictions imposed on banking transactions and demanding a transparent, time-bound mechanism to access their own funds.
The delegation met CCI President Arun Gupta at Chamber House and apprised him of the financial difficulties and mental stress being faced by thousands of depositors. The account holders said they had placed their hard-earned savings with the cooperative bank with the legitimate expectation that their money would remain secure and could be accessed whenever required for essential personal, family and business needs.
According to the depositors, the restrictions have created serious difficulties for families that had accumulated savings for children’s education and marriages, medical treatment and other pressing requirements. Business account holders, they said, were also facing difficulties in conducting routine commercial activities because of limitations on withdrawals and access to deposited funds.
The delegation demanded that the authorities establish a clear, transparent and time-bound mechanism through which depositors can access their funds, particularly in cases involving medical emergencies, marriages and deaths in families.
They urged the Chamber to take up the matter with the appropriate authorities on priority, arguing that the interests of genuine depositors need to be protected while simultaneously ensuring the future and employment security of the bank’s workforce.
The depositors also pointed out that, within the applicable regulatory framework, some account holders had already submitted applications seeking permission to withdraw funds for medical treatment and marriage-related expenses. They requested that such cases be examined sympathetically and considered on humanitarian grounds.
Expressing solidarity with the affected account holders, Arun Gupta said the situation had wider implications for the economy of the Jammu region, particularly because restrictions on the functioning of a financial institution can affect depositors, businesses, employees and the broader commercial ecosystem.
While acknowledging the regulatory framework governing cooperative banks, Gupta said the sudden restrictions had generated considerable uncertainty among depositors and affected their ability to plan and meet legitimate financial commitments.
He assured the delegation that the Chamber would take up genuine concerns with the competent authorities and work towards finding a solution that protects the legitimate interests of depositors while also supporting the revival and continued functioning of the institution.
During the meeting, the delegation also raised the long-pending issue concerning land allotted to Citizen Cooperative Bank by the Jammu Development Authority (JDA).
The depositors requested the CCI President to take up the matter with the Chief Minister, arguing that resolution of the land issue could assist the bank in strengthening its financial position and meeting applicable regulatory requirements, including those relating to its Cash Reserve Ratio (CRR).
Gupta assured the delegation that he would raise the land-allotment matter with the Chief Minister and seek its early resolution, with the stated objective of helping the bank move towards fuller operational stability.
The interaction has brought together two parallel concerns surrounding the bank—the immediate financial hardship being faced by depositors and the longer-term need to strengthen the institution so that it can resume stable operations.
For depositors, the priority remains access to funds needed for essential household, medical and business requirements. For the institution, stakeholders are seeking measures that can restore confidence, improve financial stability and protect employment.
Gupta urged the concerned authorities to intervene urgently and take appropriate measures for the revival of Citizen Cooperative Bank, stressing that a timely resolution was necessary to reduce uncertainty among depositors and safeguard the wider economic interests associated with the institution.
The Chamber’s intervention is likely to put renewed focus on the concerns of depositors and the need for coordinated action involving the regulatory authorities, the bank management and the government to work out a sustainable pathway for protecting depositors while ensuring the bank’s long-term viability.
