NMC employees, now ‘defaulters’ of their own Bank!

Banking News

NMC employees, now ‘defaulters’ of their own Bank!

Nagpur: The financial position of NMC being miserably weak, its employees are unable to receive their monthly salaries in time, and so, they have turned ‘defaulters’ of their own credit cooperative bank, the NMC Employees Credit Cooperative Bank, Nagpur.

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It may be mentioned that the NMC employees have borrowed from their Credit Cooperative bank, but the regular monthly installments, supposed to be deducted by the NMC’s finance department from their monthly salary and to be deposited with the NMC Employees Credit Cooperative Bank, since February 2015, have not been reaching the bank. As a result, the outstanding borrowing is getting burdened with additional interest charged by the bank, and many accounts are on the verge of becoming NPA. A delegation of the bank recently met the NMC Mayor Pravin Datke and urged him to do something to deposit the outstanding installments of the employees and save them from becoming NPA defaulters.

According to Manoj Joshi, working in the office of the NMC standing committee chairman, there are about 5000 voters of NMC Employees Credit Cooperative Bank, and maximum borrowers belong to class IV and III levels. From these borrowers Rs 3.40 crore goes to the bank every month as installments deducted. He further said, it is the duty of NMC administration to ensure deductions and deposit every month, but it has utterly failed, except once when it had deposited Rs 4.61 crore.

Mayor Datke, however, contacted the NMC finance officer in this regard, and the latter assured him that Rs 2 crore would be deposited with the bank by Monday and Rs 6 crore there after 15 days.

The NMC employees are under pressure from private banks as well. As they have borrowed money from private banks, they are receiving their default-notices. An employee told Nagpur Today that he had borrowed from HDFC Bank, and now he is under pressure to pay its installment, which has been delayed by 20 days.

On official record, the NMC administration is showing deductions but the actual money is not being deposited with the bank/ societies concerned. There is an outstanding amount of Rs 1.65 crore belonging to Aevajdar Society. The aevajdars are low paid workers of NMC, and if their money does not reach their society, the delay may affect their dividends due.

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