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  4. PMC Bank: Chaos in Mumbai, customers left stranded as RBI restricts cash withdrawal | Watch

PMC Bank: Chaos in Mumbai, customers left stranded as RBI restricts cash withdrawal | Watch

PMC Bank barred: The Reserve Bank of India barred Punjab & Maharashtra Cooperative Bank Ltd, Mumbai from carrying out any kind of business transactions for six months on Tuesday, sparking state of panic among the bank's depositors and sending shock waves in city trading community.

India TV Business Desk Edited by: India TV Business Desk New Delhi Updated on: September 24, 2019 14:55 IST
PMC Bank: Customers left stranded in Mumbai as RBI restrict

PMC Bank: Customers left stranded in Mumbai as RBI restrict cash withdrawal | Watch

PMC Bank barred: The Reserve Bank of India barred Punjab & Maharashtra Cooperative Bank Ltd, Mumbai from carrying out any kind of business transactions for six months on Tuesday, sparking state of panic among the bank's depositors and sending shock waves in city trading community.

The apex bank's Chief General Manager Yogesh Dayal told PTI that as per the RBI directions, depositors cannot withdraw more than Rs 1,000 of the total balance in their savings/current/other deposit accounts.

State of panic among depositors, chaos in branches:

As soon news of PMC bank been restricted made its way to the depositors, Mumbai branches of the urban cooperative bank's witnessed chaotic scenes on Tuesday. Long queues of account holders in and outside of the PMC Bank's branched across the city. Police are also deployed around the branches to avert any untoward incidents.

ALSO READ: RBI puts PMC Bank under watch, customers can't withdraw more than ₹1,000 for 6 months

Meanwhile, one of the depositors standing outside PMC Bank's Ulhasnagar branch fainted and rushed to the nearby hospital.

In a statement on Tuesday, the PMC Bank's Managing Director (MD) Joy Thomas said RBI has put the bank under regulatory restrictions to irregularities disclosed to the apex bank.

"As the MD of the Bank, I take full responsibility and assure all the depositors that these irregularities will be rectified before the expiry of six months," Thomas told the banks' thousands of distressed customers. He said that it was a difficult time for all, but urged the people to cooperate. "All efforts are made to remove the restrictions by rectifying the irregularities. I know it is a difficult time for all of you and any apology may not restore the pain you are undergoing. Please co-operate with us. We assure that we will definitely overcome this situation and stand strong.," he said.

PMC Bank account holders who were shocked by the news took to social media to express their suffering and anger.

RBI Bars PMC Bank:

The directions are imposed on PMC Bank in the exercise of powers vested in it under Sub-section (1) of Section 35A of the Banking Regulation Act, 1949 read with Section 56 of the said Act. However, RBI did not cancel the licence of PMC Bank. 

The PMC Bank has been barred from granting, renewing and loans and advances, make any investments, accept fresh deposits, etc, without the prior written approval from RBI.

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