RBI Bars Punjab and Maharashtra Cooperative (PMC) Bank From Doing Business
Mumbai, September 24, 2019 : The Reserve Bank of India (RBI) has placed the Punjab and Maharashtra Cooperative (PMC) Bank Limited, Mumbai, Maharashtra, under Directions.
According to the Directions, depositors will be allowed to withdraw a sum not exceeding Rs 1,000 (Rupees one thousand only) of the total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directions.
RBI Chief General Manager Yogesh Dayal said that Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra without prior approval in writing from the Reserve Bank, will also not be able to grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI directions dated September 23, 2019.
The Directions shall remain in force for a period of six months from the close of business of the bank on September 23, 2019.
The issue of the directions by the Reserve Bank should not, per se, be construed as cancellation of banking licence by the Reserve Bank. The bank will continue to undertake banking business with restrictions till further notice/instructions. The Reserve Bank may consider modifications of these directions depending upon circumstances.
The directions are imposed in exercise of powers vested in the Reserve Bank under Sub-section (1) of Section 35A of the Banking Regulation Act, 1949 read with Section 56 of the said Act. A copy of the Directive dated September 23, 2019 is displayed at the bank’s premises for perusal by interested members of public.
About the Bank
Punjab & Maharashtra Co-operative 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.
The humble beginning of the Bank was done in a small room at Sion, on February 13, 1984 as a single branch Bank. In a span of 35 years, the Bank has a wide network of 137 branches across six states.
