Madgaum Urban Bank commence repayment to depositors

Last year, the Reserve Bank of India (RBI) had cancelled the licence of MUCB as the bank with its financial position was unable to pay its depositors in full.
Madgaum Urban Bank commence repayment to depositors

Madgaum Urban Co-operative Bank Limited (MUCB), Margao, Goa

Gomantak Times

Madgaum Urban Co-operative Bank Limited (MUCB) has set in motion the liquidation and initiated the process of repaying the depositors.

Around the bank has 56,635 depositors, only ten thousand depositors have applied for a refund. The repayment amount is around Rs 120 crore while the amount of 45,000 depositors, who have not yet applied, is around Rs 30-40 crore.

The application has now been received by the Deposit Insurance and Credit Guarantee Corporation (DICGC) and it has been given priority to start the process.

"The deadline to apply for a refund was September 30, 2021. Those who apply till then will get this amount. Although the officers who have been appointed for the liquidation are still accepting applications, the late applicants will be considered only after the refund of the ten thousand depositors," Liquidator appointed designated officer, Kishor Amonkar, said.

Last year, the Reserve Bank of India (RBI) had cancelled the licence of MUCB as the bank with its financial position was unable to pay its depositors in full. At that time, the bank had Rs 122.32 crore in cash for liquidation and total deposits were Rs 189.81 crore. The Goa government had also appointed SV Naik as the liquidator.

Meanwhile, 250 locker holders have not surrendered their lockers and take custody of their valuables. MUCB has a total of 810 lockers spread across various branches, and the holders were granted time till September 30 ti surrender their lockers.

"Locker holders who are still in touch with the bank can return the locker even if it has expired. If the locker holders do not arrive by the end, the bank will have no other option but to break the locker as per the rules and regulations," said Amonkar.

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