the goan I network
PANAJI
In a major setback to depositors of the financially and operationally ailing Mapusa Urban Co-operative Bank of Goa Ltd, the Reserve Bank of India has imposed an embargo from Tuesday, restricting withdrawals to a limit of up to Rs 1,000 only.
Irrespective of the balances available in their accounts, customers of the bank will be able to withdraw only up to Rs 1000 till such time as the RBI does not lift the embargo. Also, if depositors have liabilities towards the bank as a borrower or surety, then the liabilities will have to first be settled before withdrawal of Rs 1000 is allowed.
The RBI directives, however, allow the bank to renew fixed deposits on maturity in the same name and same capacity. No fresh deposits will be allowed from Tuesday and only loan recovery payments will be accepted.
The directives also allow the bank to pay salaries of its employees, rents, electricity bills and other incidentals necessary for the day-to-day functioning of the bank.
Meanwhile, Chairman of the Bank Gurudas Natekar was at a loss of words when asked to react.
Natekar said, the management will wait and watch how the situation unfolds while recalling that they have approached the State government to appoint a board of administrators to temporarily take over the bank.
Former chairman Ramakant Khalap however said customers and depositors need not panic and worry about their money although he appealed for patience.
Khalap said, the bank had nearly Rs 200 crore in government securities besides another Rs 100 crore in assets. Interestingly, the late Gopal Krishna Prabhu Parrikar, father of current CM Manohar Parrikar, was one of the founder directors of the Bank.
It suffered a major setback in July 2015 when RBI first imposed restrictions on withdrawals of up to Rs 1000, and virtually put a halt to its Banking activities besides debarring it from selling its stressed assets or going in for compromise settlements with
borrowers.
The Bank’s petition challenging the directives of the RBI is pending before the Bombay High Court since 2015 and the Management had recently formally approached the State government to temporarily take over the bank until its financial status improves and the issues with RBI are sorted out.
