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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News Network
February 22,2020

New Delhi, Feb 22: China is delaying grant of clearance to India's proposal to send an Indian Air Force flight to carry relief material for people affected by coronavirus in the neighbouring country and bring back Indians from its city of Wuhan, official sources said Saturday.

India was to send a C-17 military transport aircraft to Wuhan, the epicentre of the coronavirus outbreak, on February 20 but the plane could not take off as permission was not granted for the flight.

"China is deliberately delaying grant of clearance for the evacuation flight," a high-level source said.

The aircraft was to carry a large consignment of medical supplies to China and bring back more Indians from Wuhan.

Sources said the Chinese side continued to maintain that there was no delay in granting permission for the flight to go, but "inexplicably" the clearance has not been given.

In a letter to President Xi Jinping earlier this month, Prime Minister Narendra Modi conveyed India's solidarity to the people and government of China in meeting the challenge of the coronavirus outbreak and offered to provide assistance to the country.

India then put together relief supplies in pursuance of Modi's commitment as a token of India's solidarity, particularly in the 70th year of the anniversary of diplomatic relations between the two countries.

"These supplies have been offered even as India faces tremendous shortage itself, given our ethos of helping others in their hour of need," said a source aware of the issue.

The items being supplied are gloves, surgical masks, feeding pumps and defibrillators based on the requirements as indicated by the Chinese side.

India's national carrier Air India has already evacuated around 640 Indians from Wuhan in two separate flights.

According to estimates, over 100 Indians are still living in Wuhan. A sizeable number of countries have evacuated their citizens from China and restricted movement of people and goods to and from the country in view of the massive outbreak of coronavirus there.

Indian nationals in Wuhan continue their long wait for the flight. The delay is causing them and their family members in India tremendous mental anguish, said the sources.

They said relief and evacuation flights from other countries including by France are allowed to operate by China but the permission has not come through in India's case.

"Are they not interested in Indian aid provided as our token of support? Why are they creating roadblock in evacuating our nationals from Wuhan and putting them under hardship and mental agony?" said a person aware of the issue.

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News Network
August 6,2020

New Delhi Aug 6: In a new twist in the Vijay Mallya case, a certain document connected with the case in the Supreme Court has gone missing from the apex court files. 

A bench comprising Justices U.U. Lalit and Ashok Bhushan adjourned the hearing to August 20.

It was hearing the review plea filed by Mallya against a July 14, 2017 judgment wherein he was found guilty of contempt for not paying Rs 9,000 crore dues to banks despite repeated directions, although he had transferred $40 million to his children.

The bench was looking for a reply on an intervention application, which it seemed has gone missing from the case papers.Parties involved in the case sought more time to file fresh copies.

On June 19, the Supreme Court sought explanation from its registry regarding Mallya's appeal against the May 2017 conviction in the contempt case for not repaying Rs 9,000 crore dues to banks not listed for the last 3 years.

A bench comprising Justices Lalit and Bhushan had asked the Registry to furnish all the details including names of the officials who had dealt with the file concerning the Review Petition for last three years.

The bench said according to the record, placed before it, the review petition was not listed before the court for last three years. "Before we deal with the submissions raised in the Review Petition, we direct the Registry to explain why the Review Petition was not listed before the concerned Court for last three years," said the bench.In May 2017, the apex court held him guilty of contempt of court for transferring $40 million to his children, and ordered him to appear on July 10 to argue on the quantum of punishment.

The bench said let the explanation be furnished within two weeks. "The Review Petition shall, thereafter, be considered on merits," it added.In 2017, the apex court passed the order on a contempt petition against Mallya by a consortium of banks led by the SBI. 

The banks claimed Mallya transferred $40 million from Daigeo to his children's accounts, and did not use this money to clear his debt. Banks cited this as violation of judicial orders.

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News Network
May 7,2020

May 7: India is projected to record the highest number of births in the 9 months since COVID-19 was declared a pandemic in March, with more than 20 million babies expected to be born in the country between March and December, according to top UN body.

The United Nations Children's Fund (UNICEF) warned that pregnant mothers and babies born during the pandemic across the world were threatened by strained health systems and disruptions in services.

An estimated 116 million babies will be born under the shadow of COVID-19 pandemic, UNICEF said on Wednesday, ahead of Mother's Day, observed on May 10.

These babies are projected to be born up to 40 weeks after COVID-19 was recognised as a pandemic on March 11.

The highest numbers of births in the 9 months since the pandemic was declared are expected to occur in India, where 20.1 million babies are projected to be born between March 11 and December 16. Other countries with the expected highest numbers of births during this period are China (13.5 million), Nigeria (6.4 million), Pakistan (5 million) and Indonesia (4 million), it said.

"Most of these countries had high neonatal mortality rates even before the pandemic and may see these levels increase with COVID-19 conditions," UNICEF said.

It is estimated that there will be 24.1 million births in India for the January-December 2020 period.

UNICEF warned that COVID-19 containment measures can disrupt life-saving health services such as childbirth care, putting millions of pregnant mothers and their babies at great risk.

Even wealthier countries are affected by this crisis. In the US, the sixth-highest country in terms of the expected number of births, over 3.3 million babies are projected to be born between March 11 and December 16.

"New mothers and newborns will be greeted by harsh realities," UNICEF said, adding they include global containment measures such as lockdowns and curfews; health centres overwhelmed with response efforts; supply and equipment shortages; and a lack of sufficient skilled birth attendants as health workers, including midwives, are redeployed to treat COVID-19 patients.

"Millions of mothers all over the world embarked on a journey of parenthood in the world as it was. They now must prepare to bring a life into the world as it has become – a world where expecting mothers are afraid to go to health centres for fear of getting infected, or missing out on emergency care due to strained health services and lockdowns," UNICEF Executive Director Henrietta Fore said.

"It is hard to imagine how much the coronavirus pandemic has recast motherhood" Fore said.

UNICEF said its analysis was based on data from World Population Prospects 2019 of the UN Population Division.

An average full-term pregnancy typically lasts a complete 9 months, or 39 to 40 weeks. For the purposes of this estimate, the number of births for a 40-week period in 2020 was calculated.

The 40-week period of March 11 to December 16 is used in this estimate based upon the WHO's March 11 assessment that COVID-19 can be characterised as a pandemic.

UNICEF warned that although evidence suggests that pregnant mothers are not more affected by COVID-19 than others, countries need to ensure they still have access to antenatal, delivery and postnatal services.

Similarly, sick newborns need emergency services as they are at high risk of death. New families require support to start breastfeeding, and to get medicines, vaccines and nutrition to keep their babies healthy, it said.

"This is a particularly poignant Mother's Day, as many families have been forced apart during the coronavirus pandemic, but it is also a time for unity, a time to bring everyone together in solidarity. We can help save lives by making sure that every pregnant mother receives the support she needs to give birth safely in the months to come," Fore said.

Issuing an urgent appeal to governments and health care providers to save lives in the coming months, UNICEF said efforts must be made to help pregnant women receive antenatal checkups, skilled delivery care, postnatal care services, and care related to COVID-19 as needed.

Ensure health workers are provided with the necessary personal protective equipment and get priority testing and vaccination once a COVID-19 vaccine becomes available so that can deliver high quality care to all pregnant women and newborn babies during the pandemic, it said.

While it is not yet known whether the virus is transmitted from a mother to her baby during pregnancy and delivery, UNICEF advised all pregnant women to follow precautions to protect themselves from exposure to the virus.

Closely monitor themselves for symptoms of COVID-19 and seek advice from the nearest designated facility if they have concerns or experience symptoms. Pregnant women should also take the same precautions to avoid COVID -19 infection as other people: practice physical distancing, avoid physical gatherings and use online health services, it said.

UNICEF said even before COVID-19 pandemic, an estimated 2.8 million pregnant women and newborns died every year, or 1 every 11 seconds, mostly of preventable causes.

The agency called for immediate investment in health workers with the right training, who are equipped with the right medicines to ensure every mother and newborn is cared for by a safe pair of hands to prevent and treat complications during pregnancy, delivery and birth.

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