The Central Bank has informed the public not to deposit money in institutions that are not registered with the Central Bank. If a registered institution closes down or if for some reason the Central Bank seizes the institution, will the Central Bank pay compensation to the depositors? If not what purpose does the Bank serve to the depositors? I am forwarding these questions because the Bank Supervision division of the Central Bank doesn’t seem to be doing its supervision properly.

This is very clear from the Pramuka Bank case. Depositors after so many battles were paid Rs 100,000 six years later. Now they have to wait another four years to get the balance, and interest was not paid. The culprits are still absconding. Any one depositing money in any institution is doing so at his own risk. Pramuka is a good lesson. As the matter stands, some depositors have died and many more are sick and ailing and cannot wait another four years.

A.Rajakaruna,
Kosgoda.