After nearly a decade of waiting, thousands of depositors who lost their savings when the Bhubaneswar Urban Co-operative Bank shut down in 2015 are finally getting their money back. The Odisha government has officially launched the refund process, bringing relief to affected account holders.
Why the Bank Was Shut Down
The Bhubaneswar Urban Co-operative Bank collapsed in 2015 due to severe mismanagement. Poor financial oversight and administrative failures led to its closure, leaving thousands of depositors in distress, unsure if they would ever recover their hard-earned savings.
Refund Ceremony Led by CM Mohan Majhi
Odisha Chief Minister Mohan Charan Majhi personally inaugurated the refund process at a formal event held at Lok Seva Bhawan in Bhubaneswar. On the first day alone, 117 depositors were refunded a total of ₹2.80 crore. During the ceremony, the CM handed over cheques to nine beneficiaries as a symbolic gesture, marking the start of a larger payout process.
Who Will Receive the Refunds?
According to official figures:
- A total of ₹20.96 crore will be refunded to 9,537 depositors of the Bhubaneswar Urban Co-operative Bank.
- The bank originally had 11,673 eligible depositors, with total deposits worth ₹33.87 crore.
- So far, 2,709 small depositors, each with less than ₹1 lakh in savings, have already been refunded.
The government is now focusing on depositors who had over ₹1 lakh in their accounts — those who had to wait longer due to higher claim amounts and administrative processing.
Next in Line: Other Urban Co-operative Banks
The refund drive isn’t limited to just Bhubaneswar. The Chief Minister also announced that the government will soon begin refunding depositors of four other non-functional urban co-operative banks:
- Dhenkanal
- Chhatrapur
- Aska
- Bhanjanagar
A total of ₹6 crore will be refunded to 17,859 depositors from these banks in the coming days.
What This Means for the Public
This move by the state government offers long-overdue justice to depositors, particularly the middle- and lower-income groups who depend heavily on their savings. It also helps restore public trust in the cooperative banking system, which plays a vital role in serving small towns and semi-urban areas.
