The Reserve Bank of India has recently issued a notice to the Punjab and Maharashtra Cooperative Bank (PMC) to shut down its operations from September 23. In addition, there is also a daily withdrawal limit of ₹1000 per customer which has been imposed. This has resulted in unrest among the people who have their amounts deposited in the bank. As soon as the news broke out, people gathered around PMC branches at Kandivali, Andheri and GTB Nagar branches.
People have vandalised the PMC branch at Koparkhairne by throwing stones at it and further, the Dombivali branch manager further stated that people's insurances are safe and will get refunded after the matter is solved. The unrest has only been growing among people at various branches across the city.
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Amid the chaos, the Managing Director of PMC Joy Thomas issued a statement stating that he takes full responsibility of the situation and assured all the depositors that these irregularities will be rectified before the expiry of six months. He further said that it is a difficult time for everyone but urged people to cooperate.
Notably, In exercise to the powers vested on it under subsection 1 of section 35(A) of the Banking Regulation Act of 1949, the RBI directed that Punjab and Maharashtra Cooperative Bank (PMC) will close its operations from September 23, 2019 shall not, without prior approval of writing from the Reserve Bank of India grant or renew any loans or advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits for six months.
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