It is legendary-the Madhavpura Mercantile bank and its stories of going kaput. Scores of individuals tried their best to help it survive. But luck has finally run out and the bank is out of the UCB’s map.
The Madhavpura Mercantile Cooperative Bank tainted by several murky transactions has finally ceased to exist. The RBI had earlier cancelled its banking operations license.
The sordid affairs of the bank fall within the remit of the central registrar of the cooperatives as it is a multi-state entity.
The bank had shown a reckless disregard for its own viability and many efforts by the NAFSCUB and other top politicians of the time failed to revive it. It went on giving loans to fly-by-night individuals in complete disregard to banking norms.
The bank has a huge obligation to its customers. The RBI has put the erring bank under the board of administration headed by a former bureaucrat.
Observers say the RBI action is a warning to the ones among the cooperative banks not doing their job well.