RBI puts restrictions on PMC Bank; withdrawal restricted to Rs 1,000 per account

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Image Courtesy: Business Today

The Reserve Bank of India (RBI) today has put regulatory restrictions on the amount depositors of Mumbai based “Punjab and Maharashtra Cooperative Bank (PMC Bank),” according to which the depositors will be allowed to withdraw a sum not exceeding Rs. 1,000 of the total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directions..

RBI issued an official statement today making the announcement which further says “Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra without prior approval in writing from the Reserve Bank, will also not be able to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI directions dated September 23, 2019. The Directions shall remain in force for a period of six months from the close of business of the bank on September 23, 2019.”

The shocking announcement has created a chaotic situation among the customers and a long queue of account holders were seen in many places outside the PMC branches seeking explanation on the same.

Punjab and Maharashtra Cooperative Bank (PMC Bank) has a network of 137 branches in 6 states which includes Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. PMC was founded in 1984  in Mumbai and currently ranks among top 10 cooperative banks in the country.

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