Notice Issued For Mmcb Revival

Gujarat cooperation minister Ramanlal Vora today stated in the State assembly that the Central registrar of cooperative societies (RCS) K S Bhoria has signed and issued the revival notification for the beleaguered Madhavpura Mercantile Cooperative Bank (MMCB).

Giving more details about the revival scheme notified by the Central RCS, Vora said that while the total liabilities of MMCB stand at Rs 1,687 crore, it needs Rs 1,264 crore to resume normal day-to-day functioning.

While Rs 464 crore would come from the Deposit Insurance & Credit Guarantee Corporation (DICGC), the balance Rs 800 crore would be pooled in by the Gujarat-based cooperative banks, against default guarantees to be jointly issued by the Central and state government.

 

MMCB would repay depositors holding deposits of up to Rs 1 lakh with interest up to August 24, 2001, from the Rs 464 crore that would come from DICGC as insurance claim.

For speedy clearance of the cases of the depositors, the state government would establish a court in the premises of the bank.

A new governing board would be set up comprising representatives of the state government, central government, Ahmedabad District Cooperative Bank, Gujarat State Cooperative Bank, etc.

A new chief executive officer-cum-managing director would be appointed by the Central RCS in consultation with the state government, Central government, RBI and the MMCB Revival committee. This new board would have the responsibility to wipe out the total accumulated losses of MMCB within the next ten years.

While the banks that deposit more than Rs 50 crore for the revival of MMCB would also be allowed to have their representatives on the governing board, GSCB would function as the nodal agency for implementation of the revival package, Vora elaborated.

Sources said that now the bank would start normal functioning within the next ten days.