The Reserve Bank of India (RBI) has cracked the whip on the Mapusa Urban Co-operative Bank of Goa Ltd. The central bank has placed the cooperative bank under direction in accordance with Section 35 of the Banking Regulation Act, 1949.
RBI spokesperson, when contacted, confirmed the development. Placing a bank under Section 35 of the BR Act is a damage control exercise whereby it is prohibited from accepting fresh deposits and it can make only limited advances.
Former union law minister, Ramakant Khalap, who was the chairman of Mapusa Coop Bank, Goa
