The Telegraph
Since 1st March, 1999
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RBI merger plan for Nedungadi

Mumbai, Nov. 14: The Reserve Bank of India (RBI) today notified a draft scheme for amalgamating Nedungadi Bank with Punjab National Bank in an effort to allay fears among the formerís depositors.

Notifying the draft scheme for amalgamation of Nedungadi Bank Limited with Punjab National Bank, the apex bank said it has forwarded the scheme to both banks for their comments and invited suggestions by November 30. The draft scheme for amalgamation, the RBI said, could be obtained from the banks by any of their members, depositors or creditors.

The Reserve Bank placed Nedungadi Bank under moratorium up to February 1, 2003, earlier this month and restricted the bankís depositors from withdrawing more than Rs 5,000 during the period of moratorium.

The proposed amalgamation envisages full protection of public deposits. The Reserve Bank will make all efforts to complete the process for the proposed merger as early as possible, the RBI statement said.

The RBI has been receiving several requests from depositors of Nedungadi Bank to allow them to withdraw their deposits in excess of the limit of Rs 5,000 for various personal and other reasons, RBI added.

The countryís apex bank said it would consider such requests on a case-to-case basis depending upon their genuineness.

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