MARGAO
The Madgaum Urban Co-operative Bank (MUCB) has requested the Reserve Bank of India (RBI) to take necessary steps at its end for the merger of the bank with another bank as per the law enacted by Parliament.
Replying to the RBI notice asking the MUCB to show cause within one month why the license issued to it should not be withdrawn and the bank liquidated, the management has instead made a plea to the RBI to take a call on the bank’s merger with any other bank. That the bank’s reply was silent on the liquidation aspect has sent clear indications that the MUCB is not in favour of the move.
MUCB Managing Director Kishore Amonkar informed that the MUCB has asked the RBI to take a decision on the bank’s merger as per the recently-enacted law by Parliament, empowering the RBI to take merger decisions.
Asked to comment on the bank’s liquidation, Amonkar said the MUCB only stressed on the merger of the bank with any other bank, indicating the bank remained silent on the liquidation aspect.
He further said the bank also drew the attention of the RBI to the letter made by the bank to the Union Finance Ministry, which in turn had assured to pursue the matter.
The RBI had on February 24 issued the notice to the MUCB to show cause why the license granted to the bank should not be withdrawn.
Meanwhile, the RBI has sought three weeks time to file a reply in the High Court over the proposal to hike the withdrawal limit of the depositors by another Rs 20,000.
