Repeatedly asking staff when withdrawal limits will be normal again
TNR Series: Part 6
Sourabh Sood
Shimla:
While the numbers, files and internal documents reveal a carefully built collapse inside Baghat Urban Cooperative Bank in Himachal Pradesh, the real pain is being felt outside the bank by ordinary people who trusted the institution with their life savings.
For months now, small depositors, pensioners, local shopkeepers, retired employees and daily-wage workers are living in uncertainty, worried about whether they will ever see their own money again. The crisis that began with inflated valuations and politically influenced loans has now spread into homes and households that had nothing to do with the scam, except for the simple fact that they believed in their cooperative bank.
Many elderly depositors say they deposited their savings in the bank because it felt safe, familiar and community-oriented. People who spent an entire lifetime saving small amounts for medical emergencies or their children’s future are now forced to stand in queues, repeatedly asking when withdrawal limits will be normal again.
Some have delayed surgeries, postponed children’s education payments and cut down on daily expenses. A few families have even taken new loans from private lenders at high interest simply to manage basic needs, all because the money they earned honestly is locked inside a bank that failed them.
Fund not being released on time
Small business owners who depended on the bank for working capital are facing a different kind of distress. Their cash flow has collapsed because the bank is unable to release funds on time.
Shopkeepers who once ran stable businesses are now buying goods on credit. Contractors and service providers who had accounts with the bank are unable to pay salaries to workers. Several have quietly shut their businesses, not because their work failed, but because the bank they relied on is no longer functional enough to support them. These individuals became the unintended victims of decisions made in boardrooms far away from their daily realities.
Small borrowers trapped in confusion
Even small borrowers, who took loans responsibly and repaid regularly, are now trapped in confusion. Many of them say that installment receipts are delayed, statements are incorrect and even basic services like loan account updates are not available.
Some borrowers worry that their repayments may not be recorded properly and they may later be blamed for defaults they never made. The uncertainty has created a climate of fear and mistrust, where people who always followed the rules are now struggling to defend their honesty.
Emotional toll is even heavier
The emotional toll is even heavier. Families that trusted the bank for decades now speak with frustration, anger and helplessness. They feel punished for mistakes they never made. Cooperative banks were formed to empower local communities, but today many people say they feel betrayed by the very institution that promised safety. Depositors recall how bank employees encouraged them to keep fixed deposits for long-term benefits, yet those same deposits are now difficult to withdraw even in emergencies.
Innocent bank staff bearing the burden
Meanwhile, the bank’s employees who were not part of the scam are also bearing the burden. Many employees say they face daily pressure, arguments and emotional outbursts from the public, even though they personally had no role in the decisions that led to this crisis.
Their own job security is now uncertain. Salaries have been delayed, promotions have frozen and the fear of the bank shutting down permanently hangs over them. They work under constant stress, knowing that public anger is rising and they have limited answers to give.
The community around the bank has changed in subtle but painful ways. People who once walked into the bank confidently now do so with suspicion. Conversations in markets and tea shops often revolve around “when will we get our money back” or “did you hear about another loan scam file.” The crisis has shaken people’s faith not only in this bank but in cooperative institutions as a whole. For many families, trust once broken, may not return easily.
As this investigation moves forward, one fact becomes clear-while crores of rupees were misused by a handful of borrowers and insiders, it is thousands of innocent people who are paying the real price. The collapse of Baghat Bank is not just a financial story, but a human story of broken trust, delayed dreams and everyday struggle
