Mumbai branches of Punjab and Maharashtra Co-operative Bank Ltd (PMC) saw chaos on Tuesday after the Reserve Bank of India put several restrictions on the bank for six months with effect from September 23. Withdrawals have been capped at Rs 1,000 per account.
As per the RBI regulations, the PMC Bank has been prohibited from granting or renewing loans and advances, making any type of investment, accepting fresh deposits, etc. without RBI's advance approval.
The RBI has also restricted it from disbursing, agreeing to disburse any payment, whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangements and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI notification of Monday.
PMC Bank Background
PMC Bank is a 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 in a small room in Mumbai, it now has a network of 137 branches in six states and ranks among the top 10 cooperative banks in the country.
According to PMC Bank's website, the lender was awarded the scheduled status in 2000. It is the Youngest Bank to achieve the 'Scheduled Bank' status.
The board members of the bank include S. Waryam Singh, chairman, PMC Bank, Balbir Singh Kochhar, vice chairman, PMC Bank, Joy Thomas, managing director, PMC Bank.
As per the PMC Bank's latest Annual Report, it has deposits of over Rs 11,617 crore and loans/outstandings of Rs 8,383 crore.
First Published: IST