Case Brief
What Happened
RBI has continued the Directions originally issued on July 24, 2015 to The Mapusa Urban Co-operative Bank of Goa Ltd, Goa, as modified from time to time. The release states that the existing directions, which restricted withdrawals from savings/current/term or other deposit accounts, are extended for a further six months from February 19, 2019 to August 18, 2019, subject to review. It also modifies the withdrawal cap so that up to ₹50,000 may be withdrawn from each eligible account, after adjusting any borrower or surety liabilities, and requires the bank to keep funds for depositor payments in escrow and/or earmarked securities. The action is a continuation of an existing Section 35A/Section 56 business restriction on the bank.