RBI Restricts Withdrawal Limit of PMC Bank to Rs. 1,000!

The Reserve Bank of India (RBI) has put restrictions on the withdrawal limit of Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) for six months starting September 24.

Restrictions state that customers will not be allowed to withdraw more than Rs. 1, 000 from their accounts. Bank will also be not able to grant or renew any loans and advances, make any investments and accept fresh deposits.

“According to the directions, depositors will be allowed to withdraw a sum not exceeding Rs. 1,000 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,” the RBI was quoted as saying by Mint.

A copy of the newly applied directions will be forwarded to each depositor and will be displayed on the bank’s website

The RBI further clarified that the issue of restrictions to PMC Bank should not be misinterpreted as cancellation of banking license.