Mangalore: RBI withdraws supervisory restrictions on MCC Bank
Daijiworld Media Network - Mangalore
Mangalore, Aug 31: In what can be termed as good news to the management of Mangalore Catholic co-operative Bank Ltd (MCC) lacs of its customers, the Reserve Bank of India (RBI) has withdrawn the supervisory restrictions imposed on the bank in March 2009.
In a letter dated August 19, 2013 the Reserve Bank of India has stated that the Supervisory Restrictions imposed on the bank are as treated as withdrawn. This was in response to the letter written by the Bank to the RBI requesting withdrawal of the restrictions.
It may be recalled that the RBI had imposed a penalty of Rs 5 lac on MCC bank for the irregularities committed during the period of the earlier management. It had also asked the bank to fix accountability on the staff/directors responsible for the violations in Investment Operations and furnish action taken report to the RBI. Enquiry to bring to book those responsible for the irregularities, is still on.
The RBI had assessed the bank accounts in December 2007 and had detected MTM losses to the tune of Rs 37.25 lac and other irregularities during the management of earlier regime of MCC bank. The RBI had viewed these irregularities in Non-SLR Securities transactions seriously and had put an embargo on its branch expansion, opening of ATMs and extension counters, grant of permission of AD category I/II license. There was also an embargo on the bank undertaking insurance/mutual fund business for a period of three years.
Speaking to daijiworld.com Chairman of MCC Bank Melvyn D Cunha expressed his happiness over the withdrawal of these restrictions by RBI and pointed out that the Bank had made tremendous progress in the last five years after his team was elected to take control of the management. He said, “These restrictions were like a major hurdle in our efforts to chalk out any growth plans. Despite these stringent restrictions the bank was able to have a turnover of over Rs 426 crore in the last five years. This was possible because we were able to streamline the administration.”
He expressed confidence that the current economic situation notwithstanding, the bank will be able to go on an expansion spree and make rapid progress in the coming years.
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