Why did RBI imposed restrictions on PMC Bank?

In September 2019, the RBI had superseded the board of PMC and placed it under regulatory restrictions, including cap on withdrawals by its customers, after detection of certain financial irregularities, hiding and mis-reporting of loans given to real estate developer HDIL.

Why did PMC Bank shut down?

Scam-hit Punjab and Maharashtra Co-operative (PMC) Bank has decided to close down 15 branches in the Mumbai Metropolitan Region (MMR) and shift their business to nine other branches in a bid to save on rental outgo and other operating expenses.

When did RBI put restrictions on PMC Bank?

September 23, 2019
The RBI had put the restrictions for the first time on September 23, 2019, when it was found about two-thirds of the bank’s loan book of Rs 8,000 crore had turned into bad debt due to a fraud perpetrated by the bank’s management and real estate firm HDIL.

How long has the RBI extended the regulatory ban on PMC Bank?

– The directions were last extended vide Directive dated June 25, 2021 up to December 31, 2021. Given the financial condition of the PMC Bank and in the absence of proposals for capital infusion, the bank was not viable on its own.

What is Punjab and Maharashtra bank issue?

Punjab and Maharashtra Cooperative Bank (PMC Bank) has been facing regulatory actions and investigation over alleged irregularities in certain loan accounts. The central bank also limited the amount a customer could withdraw from their account during the next six months — to Rs 1,000 at first, and later to Rs 25,000.

What is the status of PMC Bank?

The bank has been under All Inclusive Directions of the RBI from the close of its business on September 23, 2019, which has been extended till December 31, 2021. At present, the deposit withdrawal limit for PMC Bank has been capped at ₹1 lakh.

What is status of PMC Bank now?

The bank has been under All Inclusive Directions of the RBI from the close of its business on September 23, 2019, which has been extended till December 31, 2021.

Does PMC Bank comes under RBI?

It is regulated by the Reserve Bank of India and registered under the Cooperative Societies Act. On 23 September 2019, the RBI imposed operational restrictions on PMC Bank for six months.