Account holders worried after RBI places restrictions on PMC bank

Bank employees paste a closure notice issued by the RBI on a wall of Punjab and Maharashtra Cooperative Bank building, at Fort. Pic/PTI

The sky turned ominously dark for lakhs of account holders of Punjab and Maharashtra Cooperative Bank Limited on Tuesday morning as the Reserve Bank of India placed the bank under directions. Concerned crowds thronged to different branches as they learnt the bank was "in trouble" and they would be allowed to withdraw just '1,000 from their accounts. The 'directions' remain in force for a period of six months from the closure of business of the bank on September 23.

Usha D'Cruz from Andheri was reeling under the shock for hours after the news broke. "This is shocking. More so, because there was no indication of any trouble. I have an account there for years. I have had no problems all this while. This bank used to remain open from 8 am to 8 pm and I used to bank in the Versova branch. It was so convenient. I would term the service as super-efficient. Now, look at how it has crumbled." "We can withdraw '1,000, of what use is that? I was planning a vacation in these holidays. It will be on hold. There is talk that things will settle down eventually but of what use are assurances?" she finished.

Ranjeet Singh

Navi Mumbai's Harminder Kaur also cited the big C - standing for convenience, when asked about banking with PMB Co-Operative Bank. The Kamothe native said, "The long hours were a big draw. At any point in time, one would see substantial crowds inside the bank." She too expressed frustration over the '1,000 withdrawal limit. "In today's day and age, '1,000 will disappear in a day. My family has three accounts in the bank. All our money is stuck," she added. For Andheri's Ranjeet Singh, who visited the bank's Poonam Nagar (Andheri) branch yesterday morning, it was "a tumultuous Tuesday." He said, "I have been banking here for more than 20 years. When I reached the branch, there were crowds outside. Some customers were inside but the police were there too and the gates were closed."

Singh said he is now worried about how he was going to pay his children's fees. "My daughter is studying medicine. My son wants to become an engineer. The fees are high for both as you know," he stated. "My heart bled when I saw so many others outside the bank. There is a MHADA housing facility quite near this branch. Some depositors from there who banked here each had a few thousands in their account. They were weeping. It was wrenching," he said.

Rs 1,000
Amount customers can withdraw in six months

06
No. of months for which directives have been issued by RBI

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