the goan I network
MAPUSA
Even as the RBI embargo on Mapusa Urban Cooperative Bank of Goa (MUCB) for withdrawal of money comes into effect from Tuesday, the bank’s management appears to have no clue how to handle the situation.
Chairman of the MUCB, Gurudas Natekar said that bank had received the letter but he was unable to say anything in the matter at least for the moment.
“We will have to wait and watch how things will move forward. We had approached the government to take over the functioning of the bank,” Natekar said.
Founder chairman of the bank, Ramakant Khalap said that the banks financial position was safe and people had nothing to worry about.
“We appeal to the people of Goa to be patient. We have already given a proposal to the government and expect to resolve the issue sooner than later,” Khalap said.
He said the bank has over Rs 200 crore pledged in government securities besides it owns property of Rs 100 crore.
“People’s deposit is safe. Nobody should worry about their money,” Khalap said.
It may be recalled the Board of Directors of the bank had urged the government to appoint a committee of administrators to run the affairs of the bank and to help it regain its financial health.
“Day by day the financial health of the bank is deteriorating. Since the bank is under RBI directions and our request for relaxations is pending, we are unable to run the bank anymore,” Natekar had said in a letter to the chief minister on June 18 this year.
The chairman had also said that the BoDs were ready to resign and hand over the reins of the bank to the government.
It may be recalled Reserve Bank of India had issued an embargo on the bank in July 24, 2015. In the order the Apex bank had issued a series of stiff directions on the coop bank severely crippling its banking activities.
The MUCB management had then approached the Bombay High Court in Goa and got some relief but the bank could never come out from the curbs imposed by the Apex bank.
