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PMC Bank: Panic-stricken customers gather in branches after RBI sets Rs 1000 withdrawal limit

PMC Bank: Customers have also urged the RBI to allow them to withdraw their money before implementing the restrictions.

twitter-logoBusinessToday.In | September 24, 2019 | Updated 14:40 IST
PMC Bank: Panic-stricken customers gather in branches after RBI sets Rs 1000 withdrawal limit
PMC Bank: Customers gather outside on of the bank's branches

The Reserve Bank of India (RBI) imposed regulatory restrictions on Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC). Following the RBI order that account holders will be able to withdraw only Rs 1,000 from their accounts, angry customers have thronged the bank's branches demanding some explanation.

Videos circulating on social media show hordes of angry customers in PMC Bank's branches. PMC Bank customers on Twitter have also voiced their opinion and said that it is unfair that people won't be allowed to withdraw their own money from the banks. Some users have also said how they only have an account in PMC Bank and following the announcement it will be difficult for them to sustain for six months. The impositions will be enforced for six months from September 23, when the order was passed.

Customers have also urged the RBI to allow them to withdraw their money before implementing the restrictions. Some PMC Bank customers have asked Finance Minister Nirmala Sitharaman to take notice of this issue.

On Monday, the RBI stated, "According to the Directions, depositors will be allowed to withdraw a sum not exceeding Rs 1,000 of the total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directions."

PMC Bank's Managing Director Joy Thomas said in a statement that the bank has been put under regulatory restrictions by the RBI because of irregularities. "As the MD of the Bank, I take full responsibility and assure all the depositors that these irregularities will be rectified before the expiry of six months," Thomas said.

The bank has a total of 137 branches across six states - Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.

Also read: RBI puts restrictions on PMC Bank; customers can't withdraw more than Rs 1,000 from account

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