RBI has extended restrictions on withdrawals and deposits in the Punjab and Maharashtra Cooperative Bank till June 30, 2021 as it works to finalize an investor for the scam-hit multi-state cooperative bank.
Previously, RBI had imposed restrictions on PMC Bank in September, 2019 after finding financial irregularities. It had curbed all activities of PMC Bank and appointed an administrator for the next six months, besides limiting withdrawals from customers’ accounts.
The extension comes after the delay in finalizing a prospective investor for the bank. PMC Bank had received binding offers from certain investors for its reconstruction in response to the Expression of Interest (EoI) dated November 3, 2020.
The RBI statement read, “RBI and PMC Bank are currently engaging with prospective investors to secure the best possible terms for the depositors and other stakeholders while ensuring long-term viability of the reconstructed entity. Given the financial condition of PMC Bank, the process is complex and is likely to take some more time.”