RBI Bars PMC from Doing Business and Asks Depositors to Withdraw only INR 1,000 From Their 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 RBI.

Due to the restrictions by the RBI, the bank customers will not be allowed to withdraw more than ₹1,000 from their accounts for a period of 6 months, the apex bank’s Chief General Manager Yogesh Dayal said. The restriction is on the savings and current accounts or any deposit accounts.

The issuance of RBI directions should not be construed as a cancellation of PMC Bank’s licence. The bank will continue to undertake banking business with restrictions till further notice, said the RBI.

Withdrawal of INR 1000 over 6 months will push the customers below poverty line. That’s not even enough to buy peanuts for that duration. The government and RBI need to help them urgently.

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