Customers Stranded as RBI Restricts Withdrawal to Rs 1,000 at Mumbai-based PMC Bank for Six Months
The PMC Bank has been barred from granting, renewing and loans and advances, make any investments, accept fresh deposits, etc, without the prior written approval from RBI.
Punjab and Maharashtra Bank Ltd, Mumbai
Mumbai: The Reserve Bank of India has placed restrictions on the amount that can be withdrawn from the Punjab & Maharashtra Cooperative Bank, Mumbai, setting the limit at Rs 1,000.
The central bank placed the urban co-operative bank under directions for six months from the close of business of the bank on September 23, 2019, creating panic among the banks depositors sending shock waves in city trading community.
The apex bank's Chief General Manager Yogesh Dayal said that as per the RBI directions, depositors cannot withdraw more than Rs 1,000 of the total balance in their savings/current/other deposit accounts.
The PMC Bank has been barred from granting, renewing and loans and advances, making any investments, accepting fresh deposits, etc, without the prior written approval from RBI.
These restrictions will be in force for a period of six months from the close of business of the bank on September 23, 2019.
The issue of the directions by the Reserve Bank should not, per se, be construed as cancellation of banking licence by the Reserve Bank. The bank will continue to undertake banking business with restrictions till further notice/instructions. The Reserve Bank may consider modifications of these directions depending upon circumstances.
The directions are imposed in exercise of powers vested in the Reserve Bank under Sub-section (1) of Section 35A of the Banking Regulation Act, 1949 read with Section 56 of the said Act. A copy of the Directive dated September 23, 2019 is displayed at the bank’s premises for perusal by interested members of public.
Meanwhile, the decision has resulted in panic among customers of the bank. Long queues outside branches with account-holders confused over the future of the bank were seen on Tuesday morning.
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