Panaji, Dec 28 (TOI): Goa State Co-operative Bank Ltd, the apex co-operative bank in the state will give up its multi-state status by the end of March 2016, though the process started a few months ago. From new financial year in 2016, it will operate as state co-operative, while retaining the "apex bank" status. Its nine branches located in Daman and Diu will be bifurcated to form a new state co-operative bank there.

At a special general body meeting held on Sunday, the board of directors unanimously resolved to give up its multi-state status following a direction from the Reserve Bank of India.

The bank chairman Ulhas Phaldessai told TOI, after NABARD, which was asked to prepare a report for initiating the process for new status for the bank, board members unanimously resolved to drop the multi-state status. He also said that the RBI had actually set the deadline for December 31, 2015, to complete the process for bifurcation, but granted their request and extended time by three months. "We got the letter from RBI on Saturday," he said.

The apex bank will function with 59 branches once it bifurcates nine of its branches located in Daman and Diu. Phaldessai said they would transfer deposits to the tune of Rs 400 crore, 24% of the bank's total deposits, belonging to nine branches in Daman and Diu to the new entity.
Former chairman of Goa Urban Co-operative Bank Ltd Ramakant Khalap said this measure ought to have taken long ago and the bank also needs to adopt reforms.