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RBI Extends Restrictions for 6 Months on PMC Bank, Withdrawal Limit Raised to Rs 1 Lakh

Representative image.

Representative image.

PMC Bank’s activities were curbed last September after the RBI found financial irregularities.

  • News18.com
  • Last Updated: June 19, 2020, 7:49 PM IST
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The Reserve Bank of India (RBI) on Friday extended the restrictions imposed earlier on the crisis-hit Punjab and Maharashtra Cooperative (PMC) Bank by another six months.

The central bank also hiked the withdrawal limit for the cooperative bank’s depositors to Rs 1 lakh.

PMC Bank’s activities were curbed last September after the RBI found financial irregularities.

The curbs were placed under Section 35A and Section 56 of the Banking Regulation Act, which allows the regulator to impose restrictions on banks and including cooperative lenders to protect the interest of depositors.

This is the second such extension by RBI after no resolution was found for the crisis-hit bank.

“It is hereby notified for the information of the public that the validity of the aforesaid Directive dated September 23, 2019, as modified from time to time, has been extended for a further period of six months from June 23, 2020 to December 22, 2020 subject to review,” the RBI said in a statement.

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