The Reserve Bank of India (RBI) today extended the restrictions earlier imposed on Punjab and Maharashtra Co-operative Bank (PMC Bank) till December 31. RBI recently gave in-principle nod to Centrum Group to set up a small finance bank to acquire crisis-ridden PMC Bank.
“Taking into account the time required for completion of various activities involved in the process, it is considered necessary to extend the aforesaid Directions,” said the Central Bank in a release.
In September 2019, the RBI had superseded the board of PMC and placed it under regulatory restrictions, including cap on withdrawals by its customers, after detection of certain financial irregularities, hiding and mis-reporting of loans given to real estate developer HDIL. The restrictions have been extended several time since then.
PMC Bank was placed by RBI under directions under Sub-section (1) of Section 35-A read with Section 56 of the Banking Regulation Act, 1949 with effect from close of business on September 23, 2019 in the interest of depositor protection. The directions were last extended vide directive dated March 26, 2021 up to June 30, 2021.Internet Explorer Channel Network