RBI allows PMC Bank customers to withdraw ₹10,000 over a period of six months from ₹1,000 earlier

RBI allows PMC Bank customers to withdraw ₹10,000 over a period of six months from ₹1,000 earlier

  • Some relief for panic-stricken customers of Mumbai-based Punjab and Maharashtra Co-operative Bank.
  • The Reserve Bank of India has allowed the customers to withdraw upto ₹10,000 over a period of six months.
  • Earlier this week, the regulator had barred account holders from withdrawing over ₹1,000 in six months.
Panic-stricken customers of Mumbai-based Punjab and Maharashtra Co-operative Bank get some relief from the regulator. The Reserve Bank of India (RBI) today allowed the customers to withdraw upto ₹10,000 over a period of six months.

Earlier this week, the regulator barred account holders from withdrawing over ₹1,000 a day. However, a statement today said, “The Reserve Bank of India reviewed the financial position of the said bank and considers it necessary in the public interest to modify the aforesaid directions.” The regulator said that the decision was “in the interest of the depositors”.

As per the earlier RBI sanctions, the PMC Bank is debarred for six months from granting, renewing any loans and advances, make any investments, incur any liability, including borrowal of funds or accept fresh deposits, etc, without the prior written approval from RBI. Today’s directive was silent about this ban on making loans imposed on the bank.

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Described as a multi-state cooperative banking entity founded in 1984 from a small room in Mumbai, the PMC Bank has grown to 137 branches - in Maharashtra (103), Delhi (6), Karnataka (15), Goa (6), Gujarat (5), and Madhya Pradesh (2).

The decision by the banking regulator was triggered by the under-reporting of loans by PMC, according to sources cited by the LiveMint

As per the PMC Bank's latest Annual Report, it has deposits of over ₹11,617 crore and loans/outstandings of ₹8,383 crore.
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