Fri, 19 Jul, 2019

Decision to hand over MUCB to govt in public interest: Khalap

12th July 2018, 03:13 Hrs

the goan I network
Former union minister and ex-chairman of the Mapusa Urban Cooperative Bank of Goa (MUCB) Ramakant Khalap on Wednesday said asking the government to take over the affairs of the Mapusa bank was the best option in the current situation, keeping in mind the interest of the common man.  
He also said it was high time the State government comes out with a policy to protect the urban cooperative and credit society movement in Goa.  
Admitting the sudden stringent curbs imposed by RBI crippled the functioning of MUCB, he said the current management of the bank tried everything possible to bring about a rapprochement with the government and the Apex Bank, but failed.  
“Soon after the RBI restrictions in 2015, we tried holding several discussions with the state government and the Government of India including the RBI to bring the bank out of the quagmire. But it was all in vain. With no cooperation from the state government or the RBI, the only alternative now left was to ask the government to take over the bank,” Khalap said.  
A former chairman of the largest cooperative bank from Mapusa, Ramakant Khalap has been presiding over the fate of the bank for several years, except in 2005 when Mapusa MLA Francisco D’Souza took over as chairman with the backing of the BJP.  
Khalap said the current management had two options to come out of the situation, either convert the bank into a credit coop society or merge with another cooperative bank.  
“As a credit society, we can continue our business and RBI regulations would not be applicable to us. Just like Lokmanya credit society...They are doing rolling business all over India,” he said.  
But he disclosed the proposal had to be dropped after some shareholders opposed the plan.  
The alternate arrangement of merger with another bank was still in the pipeline.  
“In the current situation, my request to the government is to take pragmatic view on the issue. Take action if there is any malpractice. Nobody should be pardoned but please spare the common man,” Khalap said.  
The former union minister also stressed that the state government should finalize a policy to protect the urban cooperative and credit society movement in Goa.  
“I feel a policy to protect the interests of cooperative and credit society movement has to be finalized by the Government of Goa. They must make a policy, the way Government of India has been making for nationalised (public sector) banks,” he said.