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Madhavpura Bank reopens amidst cheer

Small depositors of the crisis-ridden Madhavpura Mercantile Co-operative Bank heaved a sigh of relief as the bank started repaying those depositors with deposits less than Rs 5,000 on Tuesday.

Long queues of depositors were seen outside the bank since this afternoon. They even burst fire crackers at many places and distributed sweets as a token of their joy.

The bank had been almost non-functional for more than past six months as it went into crisis following the stock market scam involving big bull Ketan Parekh.

The revival scheme of the MMCB was cleared by the central registrar of co-operatives on august 24 and it was also given go-ahead by the Election Commission recently.

Through the revival scheme the Depository Insurance and Credit Guarantee Corporation has sanctioned around Rs 4.60 billion as the insurance money of depositors, and various cooperative banks of the state would raise around Rs 8 billion.

The new board of management would be formed after the by-elections on September 20.

UNI

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