RBI extends curbs on Mapusa Urban Co-operative Bank till mid-November

PANAJI: The Reserve Bank of India (RBI) has extended the restrictions imposed on The Mapusa Urban Co-operative Bank (MUCB) in July 2015 for another three months till November 18. In February this year, RBI had extended its restrictions for six months up to August 18.


“The Reserve Bank of India is satisfied that in the public interest, it is necessary to extend the period of operation of the directive issued to The Mapusa Urban Co-operative Bank of Goa Ltd, Goa, and as modified from time-to-time for a further period of three months,” RBI general manager ST Kannan said.

RBI has allowed the customers of the cooperative bank to withdraw up to Rs 50,000 but has said that if there are any unpaid loans, the money being withdrawn must be used to repay the loans.

“A sum not exceeding Rs 50,000 in every savings bank account or current account or term deposit account or any other deposit account may be allowed to be withdrawn by depositor,” RBI had said in the February directives.

Earlier, RBI had permitted withdrawals of just Rs 1,000 per account.

On July 24, 2015, RBI had imposed financial restrictions on MUCB, preventing the multi-state cooperative bank from lending, after the latter’s cash reserve ratio turned negative.

According to data released by the department of cooperation, Mapusa Urban Co-operative Society has non-performing assets amounting to Rs 246.07 crore.