Newskarnataka-Mangalore
Mangalore : The Reserve Bank of India has withdrawn the supervisory restrictions imposed on the Mangalore Catholic Co-operative Bank Ltd(MCC Bank) in March 2009.
The RBI in its letter dated August 19 this year has mentioned that the restrictions imposed is treated as withdrawn. The development comes after the Bank addressed a letter to the RBI in this regard.
It is worth mentioning here that the RBI had slapped a penalty of Rs 5 lakh on the MCC Bank for the irregularities reported during the period of the erstwhile management board of the Bank. The RBI had also asked MCC Bank to fix accountability on the staff/directors responsible for the violations in Investment Operations and had directed to furnish an Action Taken Report. Enquiry in this regard is still underway.
The RBI during assessment of the bank accounts in2007 had detected MTM losses to the extent of Rs 37.25 lakh and other irregularities during the management of earlier regime of MCC bank. Taking the issue seriously the RBI had restricted the Bank with regard to 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 with regard to undertaking insurance/mutual fund business for a period of three years.
MCC Bank Chairman Melwyn D’Cunha has expressed his happiness over the RBI move.