RBI puts curb on PMC Bank, only Rs1000 can be withdrawn; restrictions imposed for 6 months

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The Reserve Bank on Tuesday imposed operational restrictions on Punjab and Maharashtra Co-operative Bank (PMC Bank), resulting in chaos outside its branches in the financial capital.As per the RBI directions to PMC Bank, withdrawals have been capped at Rs 1,000 per account and the bank is not allowed to make any fresh loans.The RBI monitors banks' health and issues such directions in case of concerns over financial health of an institution. However, no reasons were specified by the central bank for its restrictions on PMC Bank.

Watch RBI puts curb on PMC Bank, only Rs1000 can be withdrawn; restrictions imposed for 6 months With HD Quality.

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    The Reserve Bank on Tuesday imposed operational restrictions on Punjab and Maharashtra Co-operative Bank (PMC Bank), resulting in chaos outside its branches in the financial capital.As per the RBI directions to PMC Bank, withdrawals have been capped at Rs 1,000 per account and the bank is not allowed to make any fresh loans.The RBI monitors banks' health and issues such directions in case of concerns over financial health of an institution. However, no reasons were specified by the central bank for its restrictions on PMC Bank.

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    The lives of thousands of account holders of Punjab and Maharashtra Co-operative Bank were thrown into disarray. This is because RBI ordered PMC Bank not to engage in any business for six months and capped depositor withdrawals. Shambhavi Mehrotra of ET Online tells you why RBI put restrictions on the bank and happens to your deposits if RBI places PMC-like restrictions on your bank? (Additional Inputs: Mumbai Mirror)

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    - ASHI, Haryana's website - https://ashi-haryana.org/

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