the goan I network
MAPUSA
The Reserve Bank of India (RBI) has extended the restrictions imposed on the Mapusa Urban Cooperative Bank (MUCB) since July 2015 for another three months till February 18, 2020.
In August this year, the apex bank had extended its embargo for three months up to November 18.
“The RBI has extended the embargo for another three months until February 18, 2020. All the earlier conditions imposed by the central bank remain the same,” said Sailendra Sawant, General Manager of MUCB.
The RBI extension will come as a relief to the MUCB management, which had recently initiated merger talks with the Mumbai-based Saraswat Bank.
The bank was also in talks with the Thane Janata Sahakari Bank (TJSB) and has kept its merger options with the bank open.
The MUCB officials had recently written to RBI seeking more time after Saraswat Bank had expressed interest in merger.
“It’s an opportunity we have to seize upon. Our talks with Saraswat Bank is going on and we expect to seal the deal sooner than later,” said Gurudas Natekar, Chairman of MUCB.
Under the Section 35A of the Banking Regulation Act, 1949 the Apex Bank has directed MUCB not to grant or renew any loans and advances, make any investment or accept fresh deposits.
It may be recalled the MUCB’s finances came under strain after RBI imposed certain curbs on the its financial transactions in 2014.
MUCB has 24 branches in the State besides the head office in Mapusa and 193 staff members in all. Besides, the bank has 1.19 lakh shareholders and 2.48 lakh depositors.
Opportunity to finalise merger: Khalap
MAPUSA: Former chairman and present director of the Mapusa Urban Cooperative Bank, Ramakant Khalap has opined that the extended restrictions imposed by the RBI will give them a final opportunity to finalise the merger plan. 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 being granted on August 18.
“This may be the last extension that we are getting. We will now go all out to settle the merger plan once for all,” Khalap said reacting to the RBI directive.
