MARGAO
After issuing an order for the cancellation of the banking license, the Reserve Bank of India (RBI) has requested the Office of Registrar of Cooperative Societies, Goa to issue an order for winding up the bank and appoint a liquidator for the bank.
RBI Chief General Manager, Yogesh Dayal has said the RBI has cancelled the license of the MUCB on grounds that the bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of section 11(1) and section 22 (3) (d) read with section 56 of the Banking Regulation Act, 1949.
He further stated that the bank has failed to comply with the requirements of section 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with section 56 of the Banking Regulation Act, 1949;
“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 the depositors of The 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.
