MAPUSA: Mapusa Urban Cooperative Bank’s (MUCB) phase 1 liquidation process has been completed, informed Anthony de Sa, a retired senior IAS officer and the new liquidator.
In a press note release Anthony said, “Phase 1 liquidation process of MUCB has been complete and almost 29,000 depositors having deposits in excess of Rs 5 lakh with the bank have been approved for reimbursement”.
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Deposit Insurance and Credit Guarantee Corporation (DICGC), Reserve Bank of India (RBI), have been processed by the bank for payment and release orders amounting to Rs 220 crore were issued during the past three months.
“I am happy to say that the money has been deposited in the accounts of eligible depositors. In case any such depositors who are eligible for return of the amount up to 5 lakh do not receive it within a week then he/she should make an application to us so that we can check it up”, De Sa said.
De Sa further said that soon Phase 2 shall commence in which the bank shall try to reconcile the information of those depositors whose Know Your Customer (KYC) details have not been updated or whose claims have for some reason been rejected by the DICGC. This relates to less than ten per cent of the total eligible claim amount.
“We can confidently say that more than 90 per cent of the eligible claim amount has been settled,” said the liquidator.
The Liquidator further informed that the return of the balance amount over Rs 5 lakh, if any, in accounts, could be addressed only at the conclusion of the liquidation process, after all amounts due to the bank are recovered.
De Sa said that the bank would now be focusing on recovering outstanding dues. “On the date of liquidation, in April last year, there were 2,464 loan accounts. 952 such accounts have been fully recovered during the past two months and 1512 still remain outstanding. Many of these have been non-performing assets (NPAs) for several years. The bank has therefore come out with a One Time Settlement (OTS) scheme, in which partial compound interest and penalty waivers have been offered if the defaulting loanee settles the outstanding amount in a lump sum”, liquidator added.
The Liquidator has also urged all defaulting loanee to take advantage of the OTS scheme. Legal action will be taken against those who ignore the repayment, as they would be depriving the depositors from getting their full amounts,” liquidator added.
Applications for availing of the OTS have been invited from July 1 to July 31 and details of the scheme are available on the website of the bank.
