The Reserve Bank of India has extended the Directions issued on the Madgaum Urban Cooperative Bank, Margao, Goa for a further period of six months from November 03, 2019 to May 02.
After reviewing the financial position of the UCB RBI felt it necessary to modify the directions such as
“A sum not exceeding ? 30,000/- (Rupees Thirty Thousand only) of total balance in every savings bank account or current account or term deposit account or any other deposit account (by whatever name called); may be allowed to be withdrawn by depositor, provided that wherever such depositor is having liability to the bank in any manner, i.e. either as a borrower or surety, including loans against the bank deposits, the amount may be adjusted first to the relevant borrowal accounts.”
The amount required to pay the depositors should be kept by the bank separately in an escrow account and/or in earmarked securities which will be utilised by the bank only to pay to the depositors as per the revised Directions.
Other terms and conditions of the Directive under reference shall remain unchanged.