The CEO Kamlesh Mehta of the Mumbai based Kapol Co-operative Bank is a harassed man as the UCB has been put under direction on March 30, 2017 for six months. As a consequence of it, UCB has been restricted in several of its activities including withdrawal of money by the account holders.
When Indian Cooperative correspondent tried to contact CEO Kamlesh Mehta on the issue, he did pick up the phone but refused to talk to us dispensing with all civilities.
“RBI does not allow us to talk to media”, was his brief reply before slamming down the phone. It is a different matter, though that he failed to explain how RBI supervision on UCBs concerns issue other than the financial conduct.
Earlier, in a press release the apex bank RBI said Kapol Bank will also not be able to grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, , without prior approval in writing from the Reserve Bank.
RBI has however clarified that the issue of the directions by the Reserve Bank should not, per se, be construed as cancellation of banking license by the Reserve Bank. The bank will continue to undertake banking business with restrictions till its financial position improves. The Reserve Bank may consider modifications of these directions depending upon circumstances.
Kapol Cooperative Bank was established in 1939 and achieved a Multi State Status on 2000 with areas of operation extended to Ahmadabad and Surat Districts in Gujarat State.