Punjab and Maharashtra Cooperative Bank (PMC Bank) customers cannot withdraw Rs 1000 from their account with urban cooperative, Reserve Bank of India (RBI) has put the restriction on it.
“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 said RBI.
However, RBI said that the issue of the directions to PMC Bank should not be construed as a cancellation of a banking license by the central bank. PMC Bank can continue to undertake banking business with restrictions until further notice or instructions from RBI. The restriction will remain in force for a period of six months from the close of business of the bank on September 23, said RBI.
Moreover, RBI’s restrictions on the urban cooperative bank, PMC Bank will also not be able 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 central bank.
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