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Customers worried about RBI embargo on Mapusa urban bank: Natekar




The chairman of Mapusa Urban Cooperative Bank of Goa Ltd Gurudas Natekar said that the Reserve Bank of India (RBI) which imposed an embargo on restricting withdrawals to a limit of upto Rs 1,000 have left customers worried.

Natekar said that he will be meeting RBI officials to get more clarification on the restrictions imposed.

While interacting with the media after the Board of Directors meeting, chairman Natekar said, “In July 2015 the RBI had imposed an embargo on the bank against which the bank appealed in the High Court and got a stay. Again restrictions have been imposed on our bank”.

Assuring customers and shareholders, Natekar appealed to all its customers and shareholders “to cooperate with the management and not to get provoked by adverse propaganda by vested interests as management is putting in all efforts to resume banking operations”.

Natekar further assured customers and shareholders that every paisa in the bank is safe and all efforts are being made to resume banking operations at the earliest.

“Our shareholders should not fear as the bank has a share capital of Rs 23 crore, a reserve fund of Rs 50 crore, deposits of Rs 340 crore, investment in government securities is around Rs 200 crore, said Natekar.

Expressing willingness that the Board of Directors are ready to resign, Natekar said, “We had met the Chief Minister Manohar Parrikar and expressed our willingness to resign. If the Chief Minister was in Goa he would have helped us”.

Commenting on the recent move by teachers to switch to other banks following the embargo he said, “Switching to other banks by our customers will have an impact on our bank in the long run”.

It may be recalled that in July 2015, RBI had directed the bank not to grant or renew any loans and advances, make any investments, incur any liability including borrower of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of it liabilities and obligations or otherwise, enter into any compromise or agreement and sell, transfer or otherwise dispose of any of its properties or assets except to the extent and in the manner. Subsequently some sanctions were gradually lifted by RBI.

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