Reserve Bank of India which imposed financial sanctions on Mapusa Urban in 2015and initially prevented customers from withdrawing over Rs 1,000, but from February, it allowed the bank’s customers to withdraw up to Rs 50,000 over a six-month period.
RBI imposed similar sanctions this month on Madgaum Urban Cooperative Bank but has allowed customers to withdraw Rs 5000 in a six month period. RBI has also said if any customer has any unpaid loans, then the money being withdrawn must be used to pay off the loan first.
Earlier, Mapusa Urban Cooperative Bank of Goa had approached the state government for financial help as the business restrictions imposed on the bank by RBI have greatly compromised its financial position.
The RBI first imposed directions on Madgaum Urban Cooperative Bank in 2014-15, when it stopped the bank from sanctioning loans after its capital to risk asset ratio (CRAR) declined drastically from 9.33% to 3.83% in the year ending March, 2015.