RBI imposes restrictions on PMC Bank customers: Withdrawal limited to Rs 1000

HIGHLIGHTS:

1. As per the RBI directions, Yogesh Dayal, RBI chief general manager said that Mumbai based PMC bank withdrawals have been capped at Rs 1000 per current/savings/other deposits account.
2. PMC Bank is not allowed to take any fresh loans and advances or make any investments without prior approval from RBI
3. As per the recent notification, RBI clearly states that the restrictions or directions are taken by RBI should not be considered as a cancellation of its banking license.

The Reserve Bank of India or RBI has put Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) under directions for 6 months. It is applicable from the close of business of the bank on September 23, 2019, where functions like lending and withdrawals are under restrictions.

The PMC Bank customers are no allowed to withdraw more than Rs 1000 of their total balances in their current/savings/other deposits account.

As per conditions laid down by RBI in a circular, PMC is not allowed to make any investments or grant/renew any loans or advances or incur any liability which includes borrowing of funds and acceptance of fresh deposits.

Founded in 1984, PMC has currently now had 137 branches in six states with operations in the States of Delhi, Maharashtra, Karnataka, Goa, Andhra Pradesh, Gujarat and Madhya Pradesh.

Joy Thomas, PMC Bank’s MD said that RBI has put the bank under regulatory restrictions owing to irregularities disclosed to the apex bank and assured all depositors that these will be rectified before the expiry of six months.

The RBI directions are issued in public interest under Section 56 and sub-section (1) of Section 35A applicable to co-operative societies of the said Act.