Business and Economy

RBI Imposes Restrictions on PMC Bank; Withdrawal Restricted to Rs 1,000 per Account

The Reserve Bank of India has placed the Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra, under directions. According to the Directions, depositors will be allowed to withdraw Rs 1000 only from their account.

Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra without prior approval in writing from the Reserve 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. The Directions shall remain in force for a period of six months from the close of business of the bank.

“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”, said RBI in its notification.

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