The Reserve Bank of India or RBI has put limits on the amount that can be withdrawn by depositors from the Mumbai-based Punjab and Maharashtra Cooperative Bank Ltd (PMC bank). “According to the Directions, depositors will be allowed to withdraw a sum not exceeding ₹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,” the RBI said.
The RBI’s directions to PMC Bank does not necessarily mean as cancellation of banking licence by the central bank. PMC Bank can continue to undertake banking business with restrictions until further notice/instructions from RBI. The Reserve Bank may consider modifications of these directions depending upon circumstances. The restriction will remain in force for a period of six months from the close of business of the bank on September 23, said RBI.
Without the prior approval in writing from RBI, the Urban Co-operative 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.
A copy of the new RBI directive should be forwarded to each depositor and will displayed on bank’s website, said PMC Bank.
PMC Bank is a multi-state scheduled urban co-operative bank with its area of operation in the States of Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. Founded in 1984, PMC Bank has now grown to a network of 137 branches in six states and ranks among the top 10 cooperative banks in the country.
In a statement on Tuesday, the PMC Bank’s Managing Director Joy Thomas said the bank had been put under regulatory restrictions by the RBI owing to irregularities disclosed to the apex bank. “As the MD of the Bank, I take full responsibility and assure all the depositors that these irregularities will be rectified before the expiry of six months,” Thomas told the banks’ thousands of distressed customers.
He also said that it was a difficult time for all, but urged the people to cooperate.
(With input from agencies)