Points to Remember:
- A Rs. 2,500-crore loan to now-bankrupt Housing Development and Infrastructure Limited (HDIL) by PMC Bank led RBI to impose restrictions on the Mumbai-based ban.
- Bank auditors reportedly didn’t classify the loan as a non-performing asset despite HDIL defaulting on repayments.
- The RBI on September 24 barred the Mumbai-based bank from carrying out a majority of its routine business transactions for a period of six months.
- According to the RBI Directions, depositors are 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 in six months.
- Note: PMC Bank has been put under regulatory restriction under Section 35A of the Banking Regulation Act for a period of six months due to irregularities disclosed to RBI.
About PUNJAB AND MAHARASHTRA CO-OP (PMC) BANK LTD Bank :
- PMC Bank, a cooperative bank with 137 branches and at least 51,000 members spread over seven states including Delhi and Punjab, has deposits of about Rs 11,617 crore, making it among the country’s top five urban co-operative banks.
- Established: February 13, 1984
- CEO: K Joy Thomas
Important Possible questions based on above News:
- Recently which bank has been put under regulatory restriction under Section 35A of the Banking Regulation Act for a period of six months due to irregularities disclosed to RBI? PMC Bank
- Who is the incumbent CEO of PMC Bank? K Joy Thomas