Reserve Bank Of India Restricts PMC Bank Customers From Withdrawing More Than Rs 1,000 From Their Accounts

The Reserve Bank of India (RBI) has restricted depositors of the Mumbai-based Punjab and Maharashtra Co-operative Bank (PMC Bank) from withdrawing from their accounts with the urban co-operative bank.

As per an RBI directive, depositors will not be allowed to withdraw anything more than Rs 1,000 of the total balance in every savings bank account or current account or any other deposit account.

However, the RBI stated that the directions issued to the bank should not be construed as cancellation of its banking license.

The PMC Bank can continue to undertake banking business with restrictions until further instructions from the RBI, which is likely to modify its directions depending upon circumstances.

The present restriction will remain in force for a period of six months.

The PMC Bank will also not be permitted to grant or renew any loans and advances, make any investment, incur any liability including borrowing of funds and accept fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations, without prior approval in writing from the RBI.

The RBI has stated that a copy of its directive should be forwarded to each depositor and also has to be displayed on the bank's website, the PMC Bank stated.

PMC Bank is a multi-state scheduled urban co-operative bank with its area of operation in the States of Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.

Founded in 1984, PMC Bank has now grown to a network of 137 branches in six states and ranks among the top 10 cooperative banks in the country.