RBI Bars Punjab & Maharashtra Co-Op Bank from Business Transactions

The Reserve Bank of India has put constrains on the sum that can be pulled back by investors from the urban co-employable bank.

The Reserve Bank of India has set Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) under Directions for a half year from the end of business of the bank on September 23, 2019.

The investors will be permitted to pull back a total not surpassing ₹1,000 of the complete equalization in each sparing financial balance or current record or some other store account by whatever name called, subject to conditions stipulated in the RBI Directions.

Without the earlier endorsement recorded as a hard copy from the Reserve Bank, the Urban Co-usable Bank will likewise not have the option to concede or restore any credits and advances, make any venture, cause any risk including borrowal of assets and acknowledgment of crisp stores, dispense or consent to dispense any installment whether in release of its liabilities and commitments or something else, go into any trade-off or game plan and sell, move or generally discard any of its properties or resources aside from as informed in the RBI headings dated September 23, 2019.

The national bank, in an announcement, stated, the issue of the headings ought not, fundamentally, be translated as a retraction of a financial permit by the Reserve Bank. The bank will keep on embraced banking business with confinements until further see/guidelines. The Reserve Bank may consider alterations of these headings relying on conditions.

The RBI said the bearings are forced in the exercise of forces vested in it under Sub-segment (1) of Section 35A of the Banking Regulation Act, 1949 read with Section 56 of the said Act.

As at March-end 2019, PMC Bank had stores and advances accumulating ₹11,617 crores and ₹8,383 crores, individually.

The Bank is a multi-state planned urban co-employable save money with its territory of activity in the States of Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. It has 137 branches.