RBI restricts PMC bank to cap withdrawal limit to Rs. 1000 per bank account

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As per the latest guidelines of RBI, restrictions have been imposed on PMC banks (Punjab and Maharashtra Co-operative Bank Ltd) to allow withdrawal of Rs. 1000 per person. The PMC Bank are also asked not to lend fresh loans and not to indulge in any kind of selling or transferring of assets except the directions of RBI dated 23th September 2019.

RBI further directed that banks will not be able to grant or renew any loans and advances, cannot sustain any liability, make any investment, acceptance of fresh deposit, payout to its obligation or liabilities without prior approval of Reserve Bank of India.

RBI recorded the financial health of the institution and issued this direction. Since no reasons have been enumerated by RBI of such a move.

RBI’s shift to the position of capping the withdrawal limit to Rs. 1000 does not involve the cancellation of banking licence. The banks can continue with their ongoing activities unless received notice/directives from RBI. The capping of withdrawal limit will be applicable to savings bank account, current account and any other deposit account.

Legality of RBI’s Direction

Under Article 35A of the Banking Regulation Act, 1949, with ‘section 56’ of the said act, directions have been imposed.

About PMC Bank

PMC headquartered at Mumbai, Maharashtra. PMC founded in 1984 by Gurcharan Singh Kochhar. The bank is having a staff of 1814 and outlined the profit of Rs. Rs.99.69 crore for previous financial year. The board is headed by S Waryam Singh. PMC bank has 137 branches outspread in seven states. It has 81 branches in Mumbai. Navi Mumbai, Palghar and Thane.Ten branches in Pune and twelve branches in the rest of the State. The bank has approx 52000 members. PMC bank has reported total revenue of 8383.33 crores in the previous financial year.

Mayhem has been prevailed into the depositors of PMC bank as soon as they got the news from RBI about capping limit.

The RBI’s superintendence will continue to exist for the period of six months from 23rd September 2019 onward.

Official notification Link: Click here to read

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