Depositors Panic As RBI Imposes Rs. 1,000 Withdrawal Limit On PMC Bank
Reserve Bank of India has also put restriction on the PMC Bank for making any advances or loans to its customers.
The Reserve Bank of India has put limitations on the withdrawal of amount by accountholders of the Mumbai-based Punjab and Maharashtra Co-Operative Bank (PMC Bank) for six months. "The depositors will be allowed to withdraw a sum not exceeding Rs. 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," RBI said in a press release.
Reserve Bank of India has also put restriction on the PMC Bank for making any advances or loans to its customers.
"Without the prior approval in writing from the Reserve Bank, the 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 dated September 23, 2019,"RBI added in the release.
The RBI's decision to put withdrawal limits for accountholders of PMC Bank led to protest by depositors outside bank's main branch in Mumbai's Bhandup area and various other branches.
The Reserve Bank of India has however said that the restrictions imposed by it should not be interpreted as cancellation of PMC Bank's banking licence.
Reserve Bank of India has also put restriction on the PMC Bank for making any advances or loans to its customers.
The Reserve Bank of India has put limitations on the withdrawal of amount by accountholders of the Mumbai-based Punjab and Maharashtra Co-Operative Bank (PMC Bank) for six months. "The depositors will be allowed to withdraw a sum not exceeding Rs. 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," RBI said in a press release.
Reserve Bank of India has also put restriction on the PMC Bank for making any advances or loans to its customers.
"Without the prior approval in writing from the Reserve Bank, the 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 dated September 23, 2019,"RBI added in the release.
The RBI's decision to put withdrawal limits for accountholders of PMC Bank led to protest by depositors outside bank's main branch in Mumbai's Bhandup area and various other branches.
The Reserve Bank of India has however said that the restrictions imposed by it should not be interpreted as cancellation of PMC Bank's banking licence.
