RBI imposes restrictions on PMC Bank; withdrawal restricted to Rs 1,000 per accountFlame Institute

RBI imposes restrictions on PMC Bank

Highlights

RBI chief general manager Yogesh Dayal said that as per the RBI directions, depositors cannot withdraw more than Rs 1,000 of the total balance in their savings/current/other deposit accounts
The PMC Bank has been barred from granting, renewing and loans and advances, make any investments, accept fresh deposits, etc, without the prior written approval from the RBI.
Panic Erupts:
PMC Bank currently has 137 branches across multiple states in India, The Hindu detailed, adding that they are located in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. At the end of March, the bank had deposits and advances aggregating ₹11,617 crore (~$1.63 billion) and ₹8,383 crore (~$1.18 billion), respectively, the news outlet elaborated.
The central bank’s action has led to protest by customers outside the bank’s main branch in Mumbai and various other branches. “Angry and dejected customers, both young and old, protested across various branches,” the publication wrote. A reporter spoke with several customers waiting for answers at their bank, who said they were “anxious about the fate of their savings,” having “parked their lifetime savings in the bank as it offered higher fixed deposit rates than mainstream banks, and its customer service was good.” At some locations, police personnel had to be deployed to control angry customers who had either queued up at the bank’s onsite ATMs to withdraw money or demanded to know the fate of their deposits. Cops waved the RBI circular at the customers, but they were in no mood to listen or disperse.