MARGAO
The Madgaum Urban Cooperative Bank (MUCB) got a fresh lease of life on Wednesday as the Reserve Bank of India (RBI) further extended the restrictions by another two months.
While the MUCB Board of Directors as well as anxious depositors have been waiting with fingers crossed over the fate of the bank given that the RBI had issued a show cause notice to the Bank seeking an explanation as to why the license should not be withdrawn and the bank liquidated, the Apex Bank has instead extended the restrictions instead of going for liquidation.
MUCB Managing Director Kishore Amonkar told ‘The Goan’ that the RBI has further extended restrictions imposed on the operation of the bank by another two months.
It is two years since the RBI had first imposed restrictions on the MUCB in May 2019, restricting the bank operations, right from advancing loans and capping withdrawal of deposits.
The bank was placed under RBI directive via an order dated April 26, 2019, from the close of business on May 2, 2019, for an initial period of six months. The validity of these directions was further extended from time to time, the last being vide an directive dated April 26, 2021 to June 02, 2021.
While the MUCB Board had replied to the RBI’s show cause notice on withdrawal of license and liquidation of the bank, the Apex Bank is yet to take a call on the liquidation aspect till date.
In fact, the MUCB Board, in its reply had pointed out that the Apex Bank should explore the possibilities of merging the Margao-based Cooperative bank with any other bank as per the new law, empowering the RBI to take such decisions.
MUCB Managing Director Kishore Amonkar informed that the Bank is yet to receive a call from the RBI till date over the license withdrawal as well as the liquidation of the bank.
A Public Interest Litigation (PIL) which was filed by a group of beleaguered depositors headed by Dionisio Sardinha, who succumbed to the dreaded Covid earlier this week, has also not made much progress till date in view of the lockdown and prevailing Covid situation.
At the last date of hearing, the RBI counsel had sought time to file a reply to the contentions made by the bank.
