RBI Restricts PMC Bank Users From Withdrawing More Than Rs 1000

RBI on Tuesday put a clamp down on Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) from withdrawing funds.

“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 clarified that these directions do not imply cancellation of banking licence. PMC bank will be able to do business with restrictions till further notice/instructions from RBI.  The restrictions will remain in force for a period of six months, RBI said.

Without prior approval of RBI, PMC bank is not allowed to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and accept fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations.

The urban co-operative bank operates in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. It has 137 branches and was founded in 1984.

“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,” PMC Bank’s Managing Director Joy Thomas said in a statement.