The Punjab and Maharastra Cooperative bank has been imposed restriction by the Reserve Bank Of India for a period of six months. As per the restrictions imposed by the Reserve Bank of India on PMC the bank customers are not allowed to withdraw more than ₹1,000 from their accounts. The restriction is on the savings and current accounts or any deposit accounts. PMC has deposits of over 11,000 crore and advances of over Rs 8,300 cr as of March 2019 !!
The bank has to follow the directions set up by the RBI from today itself. This has caused panic among the account holders.
Check out the tweet shared by Sanjay Nirupam regarding it here,
The restrictions on PMC Bank are imposed in exercise of powers vested in the Reserve Bank under Sub-section (1) of Section 35A of the Banking Regulation Act.
RBI, however, did not cancel the licence of PMC Bank. The bank will have a few restrictions to conduct its business in future. RBI may also consider modifications of these directions, depending upon circumstances.
Joy Thomas, the Managing Director of the bank, wrote to the customers of the bank, assuring that all irregularities, which were reported to the RBI, would be rectified before the expiry of six months.
The RBI has also added that the PMC is not allowed to grant or renew any loans without prior written approval from the banking regulator. They have also barred the bank from making any investment and incurring any liability including borrow of funds and acceptance of fresh deposits.