RBI Clamps Down PMC Bank

The PMC bank has recently opened multiple branches across the state of Goa and many Goans have opened the accounts in this bank. The Punjab and Maharashtra Co-operative Bank (PMC Bank) has finally come under the scanner of RBI due to some alleged misappropriation and the Reserve Bank of India has imposed restriction for the six month making the withdrawal of cash almost impossible, Rs. 1000 per day.

All the branches in Goa seen customers flooding inside the back to withdraw their hard-earned money deposited with the bank but had return back with only 1000 rupees in their hands as the officers have informed them about the restrictions imposed by the RBI.

According to the reports, The Reserve Bank of India (RBI) on Tuesday imposed operational restrictions on Punjab and Maharashtra Co-operative Bank (PMC Bank) sending people in a tizzy outside its many branches in Mumbai. RBI has barred PMC bank from carrying out a majority of its banking transactions for a period of six months due to alleged irregularities. Depositors are not allowed to withdraw any sum exceeding Rs. 1000/-

Depositors have rushed to get their money which has resulted in chaos and confusion at different branches across the country. The PMC Bank, described as a multi-state co-operative banking entity, has branches in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh, and Madhya Pradesh. It was founded in the year 1984.

According to the RBI notice, the PMC Bank has been barred from granting, renewing fixed deposits, and loans and advances, making any investments, incur any liability on borrowings, or accept fresh deposits, without written approval from the RBI, according to a circular issued by RBI executive director Rabi N Mishra.

As per sources, cops were seen outside PMC bank in Mapusa, in order to control crowds and traffic. Goa was thrashed by incessant rainfall this year which put a dampener on Ganesh Chaturthi celebrations in the State.

This move just ahead of Dussehra and Diwali is a bolt from the blue, for customers as well as depositors. Many of the customers were seen agitated and some simply broke down. They asked for at least part of their money back, if not the whole sum.

People who have invested largely with this bank and have huge sums as deposits face a grim situation this festive season.

“The issue of the directions by the Reserve Bank should not, per se, be construed as a cancellation of its banking license. The bank will continue to undertake banking business with restrictions till further notice/instructions,” the RBI said in a notification.
The restrictions will be in force for the next six month, RBI stated.

Source: Various Sources

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