the goan I network
MAPUSA
The Reserve Bank of India (RBI) has cancelled the licence of The Mapusa Urban Cooperative Bank (MUCB) as it does not have adequate capital and earning prospects virtually stopping the banking operations of the second largest cooperative bank in the State.
The apex bank issued the order late Thursday evening.
Former chairman and presently one of the directors of the MUCB, Ramakant Khalap confirmed the apex bank’s decision.
“The RBI has conveyed the message to us that they have cancelled the licence of the Mapusa Urban Coop Bank. At least now, the RBI should first immediately release the money of depositors. For last four and half years, people are eagerly waiting for their money,” said Khalap.
The apex bank had first imposed certain curbs on the financial transactions of MUCB on July 24, 2015 which was later reviewed time to time after a period of every six months and later every three months, the last extension for two more months being granted on February18.
According to Khalap, all was not over and there were some options before the government and the RBI.
“In the interest of the people, the state government can intervene and appoint an administrator to review the RBI decision,” Khalap said.
“Secondly, the bank licence can be converted into a cooperative society,” he added.
He said liquidation of the bank was the last option which was not necessary at this stage.
MUCB’s several attempts in bid to merge the bank with some robust outstation banks also failed which may have finally forced the RBI to take the drastic action.
MUCB has 24 branches in the State besides the head office in Mapusa and 193 staff members in all. The bank has 1.19 lakh shareholders and 2.48 lakh depositors.
