Team Herald
MARGAO: S V Naik, who has taken charge as the liquidator of the Madgaum Urban Co-operative Bank (MUCB), is now waiting for the guidelines from the Deposit Insurance and Credit Guarantee Corporation (DICGC), Reserve Bank of India (RBI) to initiate the process of making payments to the depositors.
According to sources, S V Naik took charge of the bank on August 10, after the Reserve Bank of India (RBI), cancelled MUCB’s licence. As liquidator, Naik will oversee the process of paying money to the depositors and liquidation of bank’s assets and the recovery of outstanding dues.
On the other hand, Goa Bank Depositors’ Welfare Association has demanded that the DICGC should fully protect depositors under insurance funds.
“We have observed that while settling the depositors’ claims of the Mapusa Urban Co-operative Bank Limited, DICGC has utilised Rs 7,05,39,801,60 from the bank’s liquid fund and not used the money from the insurance fund. It has definitely done injustice to
depositors holding more than Rs five lakh in the bank”, said Association’s joint convenor Prasanna Utagi.
He said their demand is that insurance premium is charged on all deposits and questioned why is the insurance cover for only a deposit of up to Rs 5 lakh.
Utagi informed that as of March 31, 2020, the deposit insurance fund of DICGC is Rs 110,380 crore and the claims settled so far since 1962 are only Rs 5,200 crore.
He appealed to the bank depositors, particularly of cooperative banks, to join hands with the Association to raise their voice against DICGC’s “discriminatory and wrong” practices and protect the interests of depositors of all banks.
He said a meeting will be held to discuss the issue and decide the plan of action.
