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RBI takes over PMC Bank
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RBI takes over PMC Bank

Agency News

New Delhi: In a fresh notification issued on Monday, the Reserve Bank of India (RBI) has taken over Punjab and Maharashtra Cooperative Bank superseding the Board of the bank. RBI also appointed Jai Bhagwan Bhoria as the administrator of the bank.

RBI also provided a toll-free numbers to be used by customers for grievances and redressal. "Depositors can access the website www.pmcbank.com for any grievance redressal and call on toll free number 1800223993 for enquiries," said the bank in a statement.

On 24 September, the RBI had limited the amount that can be withdrawn from the Punjab & Maharashtra Cooperative Bank as Rs.1,000. The central bank placed the urban co-operative bank under directions for six months from the close of business of the bank on September 23, 2019, creating panic among the banks depositors sending shock waves in city trading community.

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

Earlier in the day, terming the crisis an "eye opener", Minister of State for Finance Anurag Thakur said the banking sector regulator RBI is looking into various aspects, including lapses on part of auditors.

The bank came under stress due to alleged financial irregularities forcing the Reserve Bank of India (RBI) to impose restriction on the Mumbai-based lender. The development comes at a time when the lender's suspended MD, Joy Thomas, reportedly admitted to the RBI that the bank's actual exposure to the bankrupt HDIL is over ₹6,500 crore -- four times the regulatory cap or a whopping 73% of its entire assets of ₹8,880 crore.