The shareholders of Mapusa Urban Co-operative Bank of Goa Ltd (MUCB) will be shortly submitting a memorandum to the Central Registrar, Goa Registrar, Government and Reserve Bank of India (RBI) regarding the crisis faced by this bank after the Board of Directors resigned recently. They also mentioned in the memorandum that the Board of Directors challenged the RBI before the High Court Panaji bench and after a long drawn baseless battle sensing defeat they abruptly withdrew   the case to avoid punishment under the contempt petition. The shareholders also revealed that the next AGM is scheduled to be held on September 29.

Earlier the Board of Directors of Mapusa Urban Co-operative Bank of Goa Ltd (MUCB) unanimously resigned on September 4, late evening at a meeting held at the main branch at Mapusa. It is alleged that due to the recent fiasco across the Mapusa Urban Co-operative Bank of Goa Ltd (MUCB) the board of directors resigned. On September 5, the resignation copies were sent to the Central Registrar, Goa Registrar, Government and Reserve Bank of India (RBI).

In July 2015, the Reserve Bank of India (RBI) had imposed an embargo on them. As per those directions with effect from July 24 the bank is precluded from incurring any liability including borrowing or funds and acceptance of fresh deposits or granting/ renewing any loans/ advances of marking any payments of discharging any liability. The bank is required to submit to the RBI a statement of the last day of each month regarding the expenditure incurred by them during the month, by the 7th of the succeeding month The directive be displayed at prominent place at head branch to notify the shareholders/ depositors and borrowers and the also brought to the notices of all employees and other branches.

Now in a fresh embargo on August 28, the RBI has restricted withdrawals to customers to a one time amount of only Rs. 1,000 up to February 2019. If the depositors have liabilities towards the bank as a borrower or surety then this will first have to be cleared before the withdrawal of Rs. 1,000 is allowed. According to the directions of the RBI they are allowed to renew fixed deposits and accept loan recovery payments. They are also allowed to incur expenditures met by the bank in respect to salaries of employment, rent/rates and taxes, electricity bills, printing, stationery, postage, legal expenses, court fees, payment of fees to lawyers not exceeding Rs.5,000. The General Manager of the Bank, Shailendra Sawant informed that the bank had nine properties which were owned solely and was valued at Rs. 80 crores. The President of the Goa Urban Co-operative Bank Employees Union, Subhash Naik George is of the opinion that employees should be prepared to come on the streets if there is no immediate solution to the problem. “It is surprising that although the bank has credited the salary of the employees they are unable to withdraw the same which is totally unacceptable. As the Ganesh festival is fast approaching we hope that the management takes immediate decision on the same. The employees are suffering as well as the customers as they are not able to withdraw their hard earned money from the bank,” added Suhash.

A shareholder of MUCB, Kiran Shirodkar put forth the sad state of the employees who are getting a salary credited to their account but are unable to withdraw it.

 “Most of the staff are above the age of 50 years and their future is at stake due to this problem. There are around 200 staff employed with MUCB. If RBI cancels the license of the bank where will all of them go and who will employ them at this age. In some families both the husband and wife are working here. Currently we have asked for an administrator to be appointed to carry out all the activities for at least the next three years,” pointed out Kiran.

“All these years the bank was only showing profits but actually it was not in profit. They have given huge loans and done one time settlement by waving off the interest. Around 60 to 70 crores fault is there in the interest on loan waived off. After all the income of the bank comes in from interest on loan and borrowings, “Kiran added. Another shareholder, Yeshwant Gaundalkar questioned the move made by the Board of Directors to withdraw the case from the High Court.

“Why did the board of directors withdraw the case from the high court over the embargo of the RBI if they are serious in restoring the banking operations. They have made a mockery of the shareholders by withdrawing the case from the high court,” Gaundalkar pointed out.

A Councilor of Mapusa Municipal Council, Raj Singh Rane who is also shareholder in the bank mentioned that in the bargain it is the shareholders and depositors who are have become the victims and worst sufferers.

“There is something definitely wrong with the management system which has led to the downfall of this bank which was a well-established bank having its own ten properties. The case was presented in court but the bank has withdrawn the case. The questions is have they put any terms and conditions before RBI before withdrawing the case. We now want the appointment of an administrator to resolve the crisis and the statement created by the Boars of Directors,” said Rane.

An account holder, Arjun Asolkar was of the opinion that enquiry in this matter needs to be carried out. “Why should we suffer? The people who are sick or need money do not have access to their own money. What kind of rule is this to allow us to withdraw only Rs.1,000,” questioned Asolkar.

While, a Chartered Accountant who was present at one of the meetings held at the MUCB head branch condemned the act by the RBI to allow account holders to withdraw only Rs. 1,000. “It is being noticed that the fundamental right of a person is being trashed. It is high time the matter is taken up in High Court,” he said

MUCB is the first Urban Co-operative Bank of North Goa, established on December 9, 1965. The Bank has a network of 24 branches and one Extension Counter at Thivim Industrial Estate covering the entire State.