MARGAO
It’s now over 10 days since the Reserve Bank of India cancelled the banking license of the Madgaum Urban Cooperative Bank, but the government-appointed liquidator is yet to take charge of the bank to wind up the business and pay back the money of the depositors.
When ‘The Goan’ called up MUCB Managing Director Kishore Amonkar to find out whether the government-appointed liquidator has taken over the management of the bank, he replied in the negative.
In fact, the delay on the part of the government has come as a surprise to banking officials and depositors, who have been making inquiries with the bank over the question of the appointment of a liquidator.
While cancelling the banking license of the MUCB on July 29, the RBI officials had pointed out that the bank will request the office of Registrar of Cooperative Societies, Goa to issue an order for winding up the bank and appoint a liquidator for the bank.
A number of depositors have been calling up MUCB officials, anxiously to know about the appointment of the liquidator and when the official will set in motion the process to return back the hard earned money of the depositors. “It’s only when the liquidator asks the depositors to submit their claims that they have to officially apply to the bank for the return of their deposits”, an MUCB official said.
Amonkar pointed out that the Bank has received no communication from the office of the Registrar of Cooperative Societies, Goa till date on the appointment of the liquidator.
The Madgaum Urban Cooperative Bank (MUCB) had ceased to carry on banking business with effect from the close of business on July after the RBI cancelled the banking license to the Margao-headquartered bank to carry on the banking business in India.
In fact, RBI Chief General Manager Yogesh Dayal had stated the RBI has cancelled the license of the MUCB on grounds that the bank does not have adequate capital and earning prospects.
“The continuance of the bank is prejudicial to the interests of its depositors. The bank with its present financial position would be unable to pay its present depositors in full. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further”, the RBI stated.
Dayal said the process of paying back the depositors of Madgaum Urban Co-operative Bank Limited, Margao, Goa as per the DICGC Act, 1961 will be set in motion with the cancellation of licence and commencement of liquidation proceedings.
So far, however, the liquidator has not taken charge of the MUCB, before initiating the liquidation process.
