Thursday , 19 September 2019
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RBI extends embargo on Mapusa Urban bank for six months




Reserve Bank of India (RBI) has again extended embargo on Mapusa Urban Co-operative Bank of Goa Ltd for another six months imposing various restrictions on withdrawal etc. Meanwhile banks merger talks with Punjab and Maharashtra Co-op Bank Ltd (PMC) is in pipeline as a team of 12-member has joined the bank from Monday onwards.

Confirming that Reserve Bank of India has extended embargo on the Mapusa Urban Co-operative Bank of Goa Ltd, Shailendra Sawant, general manager said, “The order extending embargo for another six months has been received imposing same earlier condition on bank on  Monday.”

It may be recalled that in August 2018, RBI had imposed embargo on Mapusa Urban Co-operative Bank of Goa Ltd for a period of six months which ended on Monday.

Various restrictions such as withdrawal of Rs 1,000 for customers, in every savings bank account or current account were imposed.

As per the directions, the bank, from the close of business cannot, without prior RBI written approval, grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits and others restrictions were imposed. Following resignation of board of directors of bank, elections are scheduled to be held on March 23, for which bank has got expenditure approval from RBI.

“We have already announced that elections will be held on March 23, and the process has started. The presiding officer has already been elected. We have also got the expenditure approval and we have submitted an estimate for approval,” said Sawant.

“A proposal has been received from PMC bank and they have in principle agreed for merger so their team of chartered accountants have joined bank from Monday, onward and will continue in bank for next two weeks.”

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