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Embargo effect: customers’ money remains blocked with Mapusa urban bank




The effect of the embargo imposed by the Reserve Bank of India (RBI) on the Mapusa Urban Co-operative Bank is now not only limited to the bank depositors and shareholders but even customers who visited the bank to pay their electricity and water bills have been affected.

Also, beneficiaries of various government schemes have been affected by the imposition of the embargo.

The embargo directly impacts around 1.20 lakh deposit holders of the bank, around 2.24 lakh shareholders and bank employees who all are not allowed to withdraw money above Rs 1,000 till the embargo period ends. However, apart from them, indirect customers of the bank like the general public visiting the bank for paying their electricity and water bills are also being impacted by the embargo.

The Mapusa Urban Co-operative Bank has a network of 24 branches and one extension counter covering the entire state of Goa and a large number of people have been visiting the bank to pay their electricity and water bills. Sources in the bank said that every week the amount with regard to the payment of bills was collected by the bank and once in a week personnel from the electricity and water departments visited the bank, withdrew the amount and deposited it in their respective department account.

However, following the RBI embargo, these department personnel are now unable to withdraw the amount, which is around Rs 30 lakh, to deposit the same in their respective department accounts. As a result, the customers who have paid their water and electricity bills will face hardships as their paid bills will not be reflected in the respective department accounts.

Similarly, around 8,100 beneficiaries of various government schemes who took benefit of the schemes through their accounts with the Mapusa urban bank will also have to approach the social welfare department and the women and child development department as they will not be able to avail the benefit. Every month, around Rs 1.58 crore pertaining to various government schemes was being disbursed to various beneficiaries through the bank. However, this month, the bank officials have returned the cheque amount back to the government.

Even customers using the Electronic Clearance Service (ECS) will suffer and may be forced to pay either late fees or approach respective institutions for adding another account so that payment does not get affected.


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