PANAJI
In further bad news for the beleaguered Madgaum Urban Cooperative Bank (MUCB), the Reserve Bank of India has extended the restrictions imposed on the bank for another three months.
The restrictions imposed by the apex bank will now continue till June 2, 2021.
The Madgaum Urban Co-operative Bank Ltd, Margao was placed under directions vide directive dated April 26, 2019 from the close of business on May 2, 2019 for a period of six months.
The validity of the above directions was extended from time to time, the last being vide up to March 2, 2021.
The validity has now been extended for a further period of three months from March 3, 2021 to June 2, 2021, as per the RBI directive dated March 2, 2021, subject to review.
The bank was also recently issued a notice to show cause within one month why the license issued to the bank should not be withdrawn and the bank liquidated.
The MUCB Board of Directors had later met under the Chairmanship of Kishore Narvekar and took stock of the situation arising out of the show cause issue by the RBI to the bank on license withdrawal.
