RBI imposes restrictions on PMC Bank, depositors can’t withdraw more than Rs 1K

Agencies
September 24, 2019

Mumbai, Sept 24: Dealing a pre-festival season blow to lakhs of unsuspecting customers, the Reserve Bank of India on Tuesday barred the Punjab & Maharashtra Cooperative (PMC) Bank Ltd from carrying out a majority of its routine business transactions for a six-month period.

The move sent panic waves among the depositors, investors and the city's banking and business circles of the PMC Bank which ranks among the top 10 cooperative banks in the country.

In a terse communique issued late on Monday, RBI Chief General Manager Yogesh Dayal said as per the apex bank's directions, depositors cannot withdraw more than Rs 1,000 from their savings/current/other deposit accounts, leading to huge chaos outside the PMC branches in Mumbai and other parts of India.

Described as a multi-state cooperative banking entity founded in 1984 from a small room in Mumbai, the PMC Bank has grown to 137 branches - in Maharashtra (103), Delhi (6), Karnataka (15), Goa (6), Gujarat (5), and Madhya Pradesh (2).

As per the RBI sanctions, the PMC Bank is debarred for six months from granting, renewing any loans and advances, make any investments, incur any liability, including borrowal of funds or accept fresh deposits, etc, without the prior written approval from RBI.

The RBI has also restricted it from disbursing, agreeing to disburse any payment, whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangements and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI notification of Monday.

Hoping to assuage the customers' sentiments, PMC Bank's Managing Director (MD) Joy Thomas said the bank had been put under regulatory restrictions by the RBI owing to irregularities disclosed to the apex bank.

"As the MD of the Bank, I take full responsibility and assure all the depositors that these irregularities will be rectified before the expiry of six months," Thomas told the bank's distressed customers.

He said that it was a difficult time for all, but urged the people to cooperate, even as the police were deployed outside many branches in the city to avert any untoward incidents.

As per the PMC Bank's latest Annual Report, it has deposits of over Rs 11,617 crore and loans/outstandings of Rs 8,383 crore.

Confusion reigned supreme outside many of the PMC Bank branches in Mumbai, Thane and other cities as depositors - mostly MSMEs and ordinary families - made a beeline to get their monies back, but were not allowed.

"We are completely ruined. We have no money at home for even basic needs. They should allow us to withdraw more or close down our accounts," a weeping woman customer told mediapersons outside the branch in Bhandup.

Another customer in Borivali said the RBI should penalize the bank management for any irregularities instead of blocking customers' accounts.

"This Rs 1,000 limit is ridiculous. We have to make purchases for Navratri, Diwali, pay our children's educational fees and other household expenses. How can we manage ?" the fuming man asked.

Former BJP MP Kirit Somaiya said he was informed of the regulatory orders against the PMC Bank and has raised the issue with the RBI and the Ministry of Finance in the interests of the customers.

"@PMC_Bank says they are under 35A of BR by the @RBI and the thing is I have all my savings stuck in that bank and they say I cannot withdraw my money now.. What do I do.. People here have all their savings in the bank and the bank says they can't help," customer Avinash Sharma tweeted.

Another customer Praful Shah tweeted: "#PMCBank. Its nothing but bankruptcy. My 25 lakhs, saved for daughters' marriages, are now trapped. My lifetime saving getting washed out overnite. Feeling sad."

Comments

kushal kumar
 - 
Wednesday, 25 Sep 2019

  1. According  to  news  reports  ,  RBI  announced  on  24  September  ,  2019  restrictions  on  the  Punjab  &  Maharashtra  Cooperative  ( PMC )  Bank  from  carrying  out   a  majority  of  its  routine  transactions  for  a  period  of  six  months.  Obviously  ,  the  RBI  move  while  being  well  intentioned  ,  has  put  customers  in  a  very  tight  position,  disabling  them  from  carrying  on  their  life  as  usual  for  no  fault  on  their  part  as  they  may  not  be  able  to  withdraw  more  than  rupees  one  thousand  during  the  restriction  period.  In  this  context  ,  it  may  be  apt  to  refer  readers  to  this  Vedic  astrology  writer’s  predictive  alert  through  article  - “  World  trends  in  April  to  August 2019”  -  brought  to  public  domain  widely  in  March  and  subsequently  on  5 April  2019.  The  predictive  alert  had  said  that  during  a  period  of  four  and  a  half  months  from  mid-April  to  August 2019  ,  among  other   countries  specified  in  the  article  ,  more  care  and  appropriate  strategy    may  be  called  for    in  India  also  in  relation  to  the  following :-

    “ 1. Economic  and  financial  aspects  may  reflect  major  worrisome  concerns.”

    A  review  of  the  predictive  alerts  carried  out  by  this  writer  in  May  2019  had  suggested  that   such  need  for  more  care  and  appropriate  strategy   may  reach  out  to  mid-October  ,  while  the  period  from  about  7  August  to  9 October  could  be  particular.  And  within  that  period  ,  25  September  to  9 October  in  2019  looked  to  be  more  particular.  It  seems  that  announcement  of  RBI  on  24  September  2019  can  be  counted  as  meaningfulness  of  the  predictive  alert. 

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Agencies
May 21,2020

More than 50 million people in India do not have access to effective handwashing, putting them at a greater risk of acquiring and transmitting the novel coronavirus, according to a study.

Researchers from the Institute for Health Metrics and Evaluation (IHME) at the University of Washington in the US found that without access to soap and clean water, over 2 billion people in low- and middle-income nations -- a quarter of the world's population -- have a greater likelihood of transmitting the coronavirus than those in wealthy countries.

According to the study, published in the journal Environmental Health Perspectives, more than 50 per cent of the people in sub-Saharan Africa and Oceania lacked access to effective handwashing.

"Handwashing is one of the key measures to prevent COVID transmission, yet it is distressing that access is unavailable in many countries that also have limited health care capacity," said Michael Brauer, a professor at IHME.

The study found that in 46 countries, more than half of people lacked access to soap and clean water.

In India, Pakistan, China, Bangladesh, Nigeria, Ethiopia, Democratic Republic of the Congo, and Indonesia, more than 50 million persons in each country were estimated to be without handwashing access, according to the study.

"Temporary fixes, such as hand sanitizer or water trucks, are just that -- temporary fixes," Brauer said.

"But implementing long-term solutions is needed to protect against COVID and the more than 700,000 deaths each year due to poor handwashing access," Brauer said.

He noted that even with 25 per cent of the world's population lacking access to effective handwashing facilities, there have been "substantial improvements in many countries" between 1990 and 2019.

Those countries include Saudi Arabia, Morocco, Nepal, and Tanzania, which have improved their nations' sanitation, the researchers said.

The study does not estimate access to handwashing facilities in non-household settings such as schools, workplaces, health care facilities, and other public locations such as markets.

Earlier this month, the World Health Organization predicted 190,000 people in Africa could die of COVID-19 in the first year of the pandemic, and that upward of 44 million of the continent's 1.3 billion people could be infected with the coronavirus, the researchers said. 

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News Network
March 5,2020

Mar 5: The Kerala government has given its nod to a proposal aimed at encouraging students aged between 18 and 25 years to take up part-time jobs while pursuing education so as to help them gain work experience and hone their skills.

The government has decided to accept the proposal as a policy decision at the Cabinet meeting held on Wednesday, an official press release said.

The aim is to ensure that in a fiscal, 90 days of work is assured for students in government departments, local body organisations, PSUs and private companies.

This will help in developing a work culture among students.

Honorariums will be given to students by the organisations employing them part-time, the release said.

Students aged between 18 and 25 years will be permitted to become part of the scheme which will help them to gain work experience and hone their skills, the release added.

In another decision, the government decided to release Rs 26 crore from the Chief Minister's disaster relief fund for providing compensation to farmers who suffered crop loss during the 2018 floods.

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Agencies
February 7,2020

Thiruvananthapuram, Feb 7: Kerala Finance Minister T M Thomas Isaac on Friday began presenting the fifth budget of the CPI(M)-led LDF government for the 2020-21 fiscal by making remarks against the Citizenship Amendment Act and the unanimous resolution passed by the state assembly against it.

Stating the amended act was posing a threat to the basic credentials of the Constitution, he said the country was witnessing the biggest protests ever in the post-Independence era.

Students and women are at the forefront of the anti- CAA agitations and the hope of the country lies in the youth who hit the streets vowing they would not let the country down, he said.

Coming down heavily on the BJP-led NDA government at the Centre, Isaac said a communalised government machinery, leaders who talk only about "disgust and hatred" and their party workers who consider violence as their duty was the current reality in the country.

"Generally speaking, it is the present India...The concerns triggered by Citizenship Amendment Act (CAA) and the National Register of Citizens (NRC) are beyond words. The fear of detention centres are hanging above the head of over 19 lakh people of Assam who have lived as Indians till yesterday," he said.

Quoting from a poem 'Fear' by a 15-year old boy from Wayanad Dhruvath Gautham who wrote 'fear is country and silence is an ornament!,' Isaac said "even the imagination of our children is now filled with fear".

Referring to the stringent opposition raised by the Left government in the state against the CAA and NRC, the finance minister lavished praise on the joint protests led by the ruling LDF and opposition UDF against the central act.

Setting aside political differences, the rival fronts in the state had joined hands to protest when the country had faced existential threat which had become a model for other states, he said.

When Chief Minister Pinarayi Vijayan and Leader of the Opposition Ramesh Chennithala jointly protested at the same venue against CAA, Kerala became a model to other states, the senior leader added.

The state showcased the same unity while passing a resolution requesting the centre to repeal the CAA and filing a suit in the apex court against this under the Article 130, he said.

"The country's economy is heading towards a severe economic crisis like that witnessed in 2009," he said.

Earlier, the references to anti-CAA protests had found a place in the Pinarayi Vijayan government's policy address also.

While presenting the policy address in the House, Governor Arif Mohammed Khan had read out references to anti- CAA resolution passed by the house, despite disagreeing with it.

Reading out the the anti-CAA stand of the state government, the Governor said "our citizenship can never be on the basis of religion as this goes against the grain of secularism which is part of the basic structure of our constitution.

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