the goan I network
MARGAO
Nearly five months after the Reserve Bank of India had restricted customers of Madgaum Urban Cooperative Bank to withdraw only a sum not exceeding Rs 5,000 in every savings bank or current account of any other deposit account, the RBI has now hiked the withdrawal limit to Rs 30,000.
MUCB Managing Director Kishore Amonkar informed that the RBI has relaxed the withdrawal restriction up to a limit of Rs 30,000 from the current ceiling pegged at Rs 5,000.
He, however, said that other restrictions imposed by the RBI still stands, including the restrictions that the MUCB is barred to grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits without the prior approval of the bank.
The RBI had imposed the restrictions on MUCB in early May last under Sec 35A of the Banking Regulation Act, barring the bank to disburse or agree to disburse any payment whether in discharge of its facilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets.
While imposing a ban on the withdrawals by the customer, capping the ceiling to Rs 5,000, the RBI, however, had said in its May order that the MUCB may renew the existing term deposits on maturity in the same name and same capacity.
The bank is still allowed to incur expenditure in respect of salaries of employees; rent, rates and taxes; electricity bills; printing and stationary; postage; legal expenses comprising stamp duty/registration charges/arbitration fees, which are payable at rates stipulated in the concerned statute or rules; court fee in compliance with the court orders; payment of fees to lawyers not exceeding Rs 5,000 in each case.
The RBI has also allowed the bank to incur expenditure on any other item in so far as it is in the opinion of the bank necessary for carrying on the day-to-day administration of the bank provided the total expenditure on any item in the calendar month shall not exceed the average monthly expenditure on account of that time during the period of six months preceding the date of the direction.
Meanwhile, Amonkar told The Goan that the MUCB has already communicated the general body decision favouring merger of the MUCH with the TJSB bank.
