RBI makes 2-month extension on Mapusa Co-op bank

The RBI has made a 2-month extension to the financial curbs imposed on the Mapusa Urban Cooperative Bank (MUCB) even as the bank continues to explore its dwindling options to revive its fortunes.

An embargo on lending and withdrawal has been extended by the apex court for three months, up to February 18. “RBI has not relaxed any conditions. They have extended the restrictions for another two months,” general manager of MUCB Sailendra Sawant said.

“Our position is not so bad, asset wise, that the bank needs to be liquidated.” Sawant said. Under the Section 35A of the Banking Regulation Act, 1949, the apex bank has directed MUCB not to grant or renew any loans and advances, make any investment or accept fresh deposits.