Breaking News: RBI puts restrictions on PMC bank; customers can withdraw only Rs 1000 in six months

According to the RBI regulations on PMC, no depositor can withdraw more than 1,000 thousand rupees from his savings, current or any other deposit account.


Mumbai| The Reserve Bank of India has imposed a six-month ban on Punjab and Maharashtra Co-operative Bank Limited (PMC Bank) on charges of irregularities. The central bank has issued special guidelines to monitor all transactions of PMC Bank. This will affect the account holders as well. Under this, no depositor can withdraw more than 1,000 thousand rupees from his savings account, current account or any other deposit account.

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According to the official notification issued on Monday (23 September), the PMC will have to take approval in writing from the Reserve Bank (RBI) before conducting banking related transactions. That is, no loan can be sanctioned or extended without permission from RBI. Also, the bank cannot invest anywhere on its own volition. However, exemption has been given in very important things like giving salary of employees.

This RBI guideline will remain in force for the next six months. The country’s highest bank has clearly said that the license of PMC Bank has not been cancelled. The bank will continue to conduct banking business until further instructions. The RBI will make a decision based on further circumstances. Click here to read full guidelines.

According to reports, by the end of March 2019, more than 11 thousand 500 crores was deposited in PMC Bank. The bank operates in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. It has about 137 branches.

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