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<ul><li>The Reserve Bank of India put withdrawal restrictions on customers of Punjab &amp; Maharashtra Cooperative (PMC) Bank.</li><li>Depositors cannot withdraw more than ₹1,000 from their savings/current/other deposit accounts.</li><li>The sanctions from the central bank ahead of the festive season has led to panic and protests in many parts of the country.</li><li>The business as usual has been restricted due to under-reporting of bad loans, according to reports.</li></ul>Thousands of customers of Punjab &amp; Maharashtra Cooperative Bank (PMC) woke up to a terse notification from the Reserve Bank of India. Depositors cannot withdraw more than ₹1,000 from their savings/current/other deposit accounts. The bolt from the blue, ahead of the festive season, led to panic protests in many parts of the country. <div type="image" title="Thane: Customers gather inside the Punjab and Maharashtra Cooperative Bank, at K..." msid="71279706" hostid="261" caption="&amp;lt;p&amp;gt;Customers gather inside the Punjab and Maharashtra Cooperative Bank, at Kolshet in Thane. The Reserve Bank of India has placed Mumbai-based PMC Bank under directions for six months from the close of business of the bank on September 23, 2019.Photo)(&amp;lt;/p&amp;gt;"></div>

 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. 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). <div type="image" title="Mumbai: Bank employees paste a copy of closure notice issued by the RBI on a wal..." msid="71279713" hostid="261" caption="&amp;lt;p&amp;gt;Bank employees paste a copy of closure notice issued by the RBI on a wall of Punjab and Maharashtra Cooperative Bank building, at Fort in Mumbai. The Reserve Bank of India has placed Mumbai-based PMC Bank under directions for six months from the close of business of the bank on September 23, 2019.Photo/Mitesh Bhuvad)(&amp;lt;/p&amp;gt;"></div>

 The RBI has also restricted PMC, which ranks among the top 10 cooperative banks in the country, from disbursing, agreeing to disburse any payment-- even if it is to discharge its liabilities. Neither can the bank 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. The decision by the banking regulator was triggered by the under-reporting of loans by PMC, according to sources cited by the LiveMint. <div type="image" title="Thane: Customers show a message received on their phones about the closure of Pu..." msid="71279724" hostid="261" caption="&amp;lt;p&amp;gt;Customers show a message received on their phones about the closure of Punjab and Maharashtra Cooperative Bank, at Kolshet in Thane. The Reserve Bank of India has placed Mumbai-based PMC Bank under directions for six months from the close of business of the bank on September 23, 2019.Photo)(&amp;lt;/p&amp;gt;"></div>

 "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. <div type="image" title="Mumbai: A man talks on his phone outside outside the Punjab and Maharashtra Coop..." msid="71279739" hostid="261" caption="&amp;lt;p&amp;gt;A man talks on his phone outside outside the Punjab and Maharashtra Cooperative Bank at GTB Nagar in Mumbai. The Reserve Bank of India has placed Mumbai-based PMC Bank under directions for six months from the close of business of the bank on September 23, 2019.Photo/Shashank Parade) (&amp;lt;/p&amp;gt;"></div>

 "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," Joy Thomas , Managing Director, PMC said the bank had been put under regulatory restrictions by the RBI owing to irregularities disclosed to the apex bank. As per the PMC Bank's latest Annual Report, it has deposits of over ₹11,617 crore and loans/outstandings of ₹8,383 crore. With inputs from IANS SEE ALSO: RBI offers Narendra Modi government money to boost growth-- share markets cheer India will soon have an online fraud registry with real-time data

In pics: Thousands of customers of a small bank in India panic after the regulator cracks the whip

New Delhi, Nov 20 () Raising the issue of scam-hit Punjab &amp; Maharashtra Cooperative (PMC) Bank in the Lok Sabha on Wednesday, a BJP member asked the finance ministry to direct the RBI to resolve the issue and ensure that all depositors get back their money.
Kapil Patil (BJP), Lok Sabha member from Maharashtra, said lakhs of people have accounts in that bank and now they are facing problem as the RBI has put certain restrictions on withdrawal of money.
He said that several of the persons do not have money to pay fees for their children.
"They observed Diwali festival in dark...I request finance ministry to direct RBI on the issue so that people get back their money," he said while raising the issue during Zero Hour.
Distressed depositors of scam-hit PMC Bank on Wednesday held a day-long protest outside the RBI office here, demanding their "hard-earned" money be returned at the earliest.
Raising an issue during the Zero Hour, Nishikant Dubey (BJP) demanded that members of ST community who change their religion should be denied the benefit of reservation.
Citing an example, he said the percentage of ST community becoming christians have increased from about 3 per cent in 1947 to about 20 per cent.
Saugata Roy (TMC) urged the government to honour Indian-American Abhijit Banerjee, who has won the 2019 Nobel for Economics.
"Parliament should give a reception to him," he said.
Abdul Khaleque (INC) demanded to change the newly appointed NRC state coordinator as the officer is giving updates on social media, which is not being appreciated.
R S Sharma (BJP) said the governmentshould take steps to prevent use of melamine, a chemical, in milk and milk products as it is "slow poison" and harmful for health.
Ritesh Pandey (BSP) asked that the Centre and the state government should releases funds for payments of salaries to Madarsa teachers in Uttar Pradesh.
Raising the issue of disinvestment of BPCL, Rahul Shewale (SS) said that the government should not consider any such proposal as privatisation of this company would impact employees and the country also.
"Privatisation of BPCL will be bad for the nation," he said.
Asit Kumar Mal (AITC) demanded immediate withdrawal of central forces from Visva-Bharati University as law and order is a state subject. RR CS BAL

PMC Bank issue raised in Lok Sabha

Mumbai, Mar 21 () The Reserve Bank of India (RBI) on Saturday said it has extended regulatory restrictions on Punjab and Maharashtra Cooperative (PMC) Bank for three more months till June 22, 2020. The RBI had put a six-month regulatory restriction on the bank on September 23, 2019, after finding out certain financial irregularities, hiding and misreporting of loans given to real estate developer HDIL. "It is hereby notified for the information of the public that the validity of the directive dated September 23, 2019, as modified from time to time, has been extended for a further period of three months from March 23, 2020 to June 22, 2020, subject to review," the RBI said in a release. It could be noted that unlike in the case of commercial banks, the RBI has no powers to draw up an enforceable scheme of reconstruction of a cooperative bank. "Nevertheless, in the interest of the depositors and the stability of the cooperative banking sector, the RBI, in consultation with various stakeholders and authorities, is trying to work out a scheme for revival of the bank," the release said. The restriction on PMC included barring the bank from lending and accepting fresh deposits. The RBI also superseded the board and the management of the bank and appointed an ex-RBI official as the administrator at the bank. HV MKJ

RBI extends regulatory restrictions on PMC Bank by 3 months

<ul><li><keyword id="1907998" type="ORGANIZATION" weightage="20" keywordseo="PMC-Bank">PMC Bank</keyword> is known to have lent to HDIL using over 20,000 bogus accounts. </li><li><keyword id="178285" type="COMPANY" weightage="20" keywordseo="Laxmi-Vilas-Bank">Laxmi Vilas Bank</keyword>’s directors are being investigated in a case of missing FDs. </li><li><keyword id="127124" type="CITY" weightage="20" keywordseo="DHFL">DHFL</keyword>’s senior citizen investors are left in the lurch as it is being investigated by police for underworld links. </li><li>Religare Finvest alleged that the former promoters— the SIngh brothers — have stripped the company of its assets. </li></ul>Those who choose not to remember 2019 as a year of slowdown can remember it as a year of banking failures. PMC Bank, a large <keyword id="174493" type="COMPANY" weightage="20" keywordseo="Commercial-Bank">commercial bank</keyword> with 1.6 million depositors fell this year, almost two decades after a co-operative bank called Krushi Bank went defunct. History repeated itself with heart aches and heart attacks to depositors. There is more to worry about as other banks might be in the throes of trouble as well. The banking regulator the Reserve Bank of India (RBI) admitted that ₹71,500 crore worth of bank <a href="https://economictimes.indiatimes.com/news/economy/finance/bank-fraud-touches-rs-71543-crore-in-2018-19-rbi-annual-report/articleshow/70895326.cms">frauds have been </a>detected in 2018-19. To remedy this situation, yesterday the Central Bureau of Investigation (CBI) started conducting raids across 11 states in the country yesterday, in hopes of recovering what banks had lost. Here are the troubles that rocked the banking sector this year.

Slowdown or not, these India’s banks and shadow banks are in trouble

Mumbai, Jun 19 () In a relief to the depositors of scam-hit PMC Bank, the Reserve Bank on Friday enhanced the withdrawal limit to Rs 1 lakh while extending the regulatory restriction on the cooperative bank by another six months till December 22. The earlier withdrawal limit was Rs 50,000 per depositor. The RBI had placed regulatory curbs on the Punjab and Maharashtra Cooperative Bank Limited, Mumbai, on September 23, 2019, after finding out certain financial irregularities, hiding and misreporting of loans given to real estate developer HDIL. With the latest relaxation on withdrawal, more than 84 per cent of the depositors of the bank will be able to withdraw their entire account balance, the RBI said. The withdrawal limit was last enhanced to Rs 50,000 per depositor on November 5, 2019, and the restrictions extended up to June 22, 2020. "Further, on a review of the bank's liquidity position, its ability to pay the depositors and with a view to mitigating the difficulties of the depositors during the prevailing COVID-19 situation, it has also been decided to further enhance the limit for withdrawal to Rs 1,00,000 per depositor, inclusive of Rs 50,000 allowed earlier," the RBI said in a statement. The RBI said it has been engaging with the stakeholders to explore the possibility of a resolution of the bank. However, the process has been affected due to the lockdown on account of COVID 19 and the continuing uncertainty around the pandemic. Further, the extent of the negative net worth of the bank, and the legal processes involved in recovery of bad debts also pose challenges/limitations in resolution of the bank, it said. Earlier, the central bank had superseded the board of PMC Bank and had appointed J B Bhoria, an ex-RBI official, as its administrator. The RBI had placed restrictions on the bank that included barring the bank from giving fresh loans and acceptance of fresh deposits. Depositors were also not allowed to withdraw more than Rs 1,000 initially from their accounts but the limit was increased gradually later. NKD MR MR

RBI doubles withdrawal limit to Rs 1 lakh for PMC Bank depositors

<ul><li>Union Information and Broadcasting Minister <keyword id="119642" type="PERSON" weightage="20" keywordseo="Prakash-Javadekar">Prakash Javadekar</keyword> announced today on June 24 that all urban cooperative banks and multi-state cooperative banks will be brought under the supervision of <keyword id="102024" type="COMPANY" weightage="20" keywordseo="The-Reserve-Bank-of-India">the Reserve Bank of India</keyword> (RBI).</li><li>This means that the central bank's powers will apply to cooperative banks as they apply to scheduled banks.</li><li>"Depositors' money amounting to ₹4.84 lakh crore in the cooperatives banks will stay safe," said Javadekar.</li></ul>The Union Cabinet has decided to bring all cooperative banks under the supervision of the Reserve Bank of India (RBI) through an ordinance. This includes urban cooperative banks and multi-state cooperative banks as announced by Union Information and Broadcasting Minister Prakash Javadekar during a virtual press meet earlier today, June 24. This means RBI's powers will apply to the cooperative banks as they apply to scheduled banks. There are about 1,482 crore urban cooperative banks and 58 multi-state co-operative banks with a depositors base of about 8.6 crore across India. "Depositors' money amounting to ₹4.84 lakh crore in the cooperatives banks will stay safe," said Javadekar citing that this will be the 'new normal'. He said an ordinance in this regard will be promulgated — put into force by official proclamation. These banks will come under the supervision of RBI with immediate effect from date of President’s approval on the ordinance. The decision comes in the wake of lakhs of depositors facing problems after a scam hit the multi-state Punjab and Maharashtra Cooperative (PMC) Bank. In February, earlier this year, the Union Cabinet approved amendments to the Banking Regulation Act to bring 1,540 cooperative banks under the Reserve Bank of India (RBI) regulation to strengthen cooperative banks to avoid another PMC Bank-like crisis. (with PTI inputs) SEE ALSO: <a href="https://www.businessinsider.in/business/news/rbi-revises-exposure-limits-for-urban-cooperative-banks-to-single-group-borrowers/articleshow/74617194.cms" style="">RBI revises exposure limits for urban cooperative banks to single, group borrowers</a> <a href="https://www.businessinsider.in/business/news/rbi-bans-banks-cooperatives-from-paying-dividends/articleshow/75198513.cms" style="">RBI bans banks, cooperatives from paying dividends</a> <a href="https://www.businessinsider.in/business/news/nabard-disburses-rs-20500-crore-to-coop-banks-rrbs/articleshow/75809910.cms" style="">Nabard disburses Rs 20,500 crore to coop banks, RRBs</a>

RBI to supervise cooperative banks — they will adhere to the same rules as other scheduled banks in India

<ul><li>Scam-hit PMC Bank's depositors from Delhi staged a protest outside the Reserve <keyword id="6355303" type="DOMAIN" weightage="20" keywordseo="bank-of-india">bank of India</keyword> to demand that their money be returned.</li><li>The bank has been put under restrictions by the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> after an alleged fraud came to light following which the deposit withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors.</li><li>Subsequently, it was raised to Rs 10,000 and to Rs 50,000 earlier this week by the RBI.</li></ul>Scam-hit PMC Bank's depositors from Delhi staged a protest outside the Reserve bank of India here on Monday to demand that their money be returned. They threatened to go on a hunger strike after March 2 if their money is not returned and their concerns not addressed. Hemant Kumar, who had come from Malviya Nagar, said, "These people will not understand till we carry out a Shaheen Bagh-like protest outside the RBI. If they do not listen to us, we will block the road outside the RBI." Tek Chand, who has an account with Tilak Nagar branch, said, "My wife is a kidney patient and she has to undergo dialysis thrice every month. What am I supposed to do? I have been left helpless due to the situation. it is our hard earned money." Another depositor, <keyword id="8827022" type="PERSON" weightage="20" keywordseo="tajinder-pal-singh-gujral">Tajinder Pal Singh Gujral</keyword>, a resident of Janakpuri, had deposited Rs 2.5 crore in the bank after he sold his house, a day before the bank shut down in September. "I had sold off my house and the payment from that deal had come into my account with the PMC bank. I had booked another house and given Rs 5 lakh as down payment and was supposed to pay for it from the PMC account. But, now, those Rs 5 lakh are also gone and this money is also stuck. I cannot buy a house or do anything for my business," he said. The bank has been put under restrictions by the RBI after an alleged fraud came to light following which the deposit withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors. Subsequently, it was raised to Rs 10,000 and to Rs 50,000 earlier this week by the RBI. Punjab &amp; <keyword id="689622" type="COMPANY" weightage="20" keywordseo="Maharashtra-Cooperative-Bank">Maharashtra Cooperative Bank</keyword>, which is among the top-10 urban cooperative banks, was placed under an RBI administrator on September 23 for six months due to massive under-reporting of dud loans. The bank, over a long period of time, had given over Rs 6,500 crore in loans to HDIL, which is 73 per cent of its total advances, and which has turned sour with a shift in the fortunes of the now bankrupt company. Its total loans stand at Rs 8,880 crore and the deposits at over Rs 11,610 crore. There have been massive protests across city from the depositors following the RBI action. SLB DP HRS

Scam-hit PMC bank depositors are inspired by Shaheen Bhag protests

Mumbai, Feb 4 () Maharashtra State Co-operative (MSC) Bank has written to Union Finance Minister Nirmala Sitharaman seeking merger of branches of PMC Bank, in case of a takeover of the troubled lender, a top official said on Tuesday.
Any progress on such a scheme can only happen once the exact extent of the fraud and the liabilities arising are ascertained through a forensic audit, MSC Bank Chairman Vidyadhar Anaskar made it clear.
For the branch merger as opposed to bank merger idea, he explained that MSC Bank is an apex bank for cooperatives and Punjab and Maharashtra Cooperative Bank's multi-state presence makes it difficult to execute such a deal.
"We have written to the Finance Minister, suggesting a branch merger and not a bank merger," Anaskar told reporters here.
He said under the proposed scheme, apex banks in Gujarat and other states where PMC has a presence will take over its branches to make it easier for the transaction to go through.
It can be noted that over Rs 11,000 crore in depositor money has been stuck after the RBI decided to put PMC Bank under instructions in September last year, and appointed an administrator on it after discovering mismanagement.
The bank has been found to have given over Rs 6,700 crore loans to a single company - realty player HDIL - through allegedly fraudulent means and also hid the stress from the Reserve Bank of India by creating to separate books of accounts.
The police has pegged the extent of fraud at PMC Bank at RS 4,700 crore, while other agencies, including the Enforcement Directorate, are also investigating the matter.
A few months ago, NCP leader and Maharashtra minister Jayant Patil had publicly suggested the idea of merging PMC Bank with MSC Bank.
Anaskar said before any progress on the matter, it is essential to ascertain the extent of the fraud at the lender which can only be done after the RBI's forensic audit in the matter.
He, however, also said the RBI may not be averse to a branch merger that the bank is suggesting and such a transaction will not require any changes in laws.
In support of his argument, Anaskar reminisced over six years ago, there was a similar proposal for a branch merger of the troubled Rupee Cooperative bank and the RBI was amenable to the idea.
Meanwhile, the MSC Bank also announced that it has sent two separate proposals to the RBI for merging Rupee and City Cooperative Bank with itself, which will require it to allocate over Rs 1,300 crore of capital.
Both the proposals have been presented jointly with the target banks and after ratification by the cooperatives department of Maharashtra government.
It will have to allocate Rs 980 crore for the Rupee merger, while the City bank scheme will require it to allocate nearly Rs 300 crore.
The genesis of both the proposals is the bank's desire to de-risk beyond the sugar industry by serving the retail segment, Anaskar said, adding that merging the two urban cooperatives banks with itself will give it a retail heft both in distribution and assets.
The total assets of both the banks are Rs 1,400 crore, which will give MSC Bank a good foothold in the retail category, he said, adding that to start with the entire portfolio will be considered as a loss.
Both the proposals involve a support from the Deposit Insurance and Credit Guarantee Corporation, wherein the deposit holders in both the troubled banks will be paid upfront and the bank will subsequently pay-off the DICGC.
Over a third of the depositors' stuck money is released upfront by the DICGC as liquidity support to make a merger possible and then repaid back by the bank once asset recoveries start, he said.
Anaskar exuded confidence that the RBI will give it a go-ahead on both the mergers in about four months' time, despite its own record of having stuck with a mismanagement three years ago.
He said MSC Bank has a total capital adequacy of over 16 per cent, including core buffers at over 14 per cent, and will be able to take care of a merger like this.
At present, the bank is returning excess capital to the district banks which are its members, Anaskar said.
Rupee has five lakh depositors, while City has over 80,000 depositors. AA BAL
BAL

Maharashtra Co-op Bank pitches for branch merger of PMC Bank

Mumbai, Dec 27 () The RBI-appointed administrator of scam-hit Punjab and Maharashtra Co-operative Bank has floated a request for proposal to appoint a consultant for valuation of two aircraft and a yacht owned by HDIL group firms.
These assets belong to HDIL group firms owned by Rakesh Wadhawan and his son Sarang, the prime accused in the Rs 6,500-crore scam at the cooperative lender.
In November, a local court had allowed the cooperative bank's administrator, J B Bhoria, to sell two aircraft- Dassault Falcon 200 (VT-HDL) and Challenger 300 (VT-PIL)- and one yacht (Ferreti 881 HT).
 "The RBI-appointed administrator to PMC Bank intends to monetise a yacht and two aircraft through a transparent process. For the purpose, the administrator plans to appoint a valuer/consultant and invites proposals from interested parties," the administrator said in a public notice.
 Earlier this month, the administrator had invited bids from advisors/process coordinator to sell these three assets.
 The Enforcement Directorate (ED), which is probing the scam along with the Mumbai Police's Economic Offences Wing (EOW), has attached the movable properties of the Wadhawans.
 These properties comprise 15 luxury cars, a seven- seater speedboat, besides two aircraft and a yacht belonging to HDIL and its promoters.
 The ED had earlier told the court that it did not have any objection to disposal of two airplanes and a yacht by the PMC Bank administrator.
RBI Governor Shaktikanta Das had recently said the cooperative bank, with the help of professional valuers, is assessing the realisable value of assets mortgaged by borrowers as well the assets of the bank which have been seized by the EOW and ED.
 Das had said the forensic audit report of the bank is likely to be finalised by the end of this month. The cooperative bank has been under the RBI's restriction since September 23, 2019, after the regulator found financial irregularities including under reporting of loans and non performing assets of real estate developer HDIL.
 In September, had reported that the cooperative lender's actual exposure to the bankrupt HDIL is over Rs 6,500 crore -- which is 73 per cent of its entire assets of Rs 8,880 crore.
 In November, the RBI had informed the Bombay High Court that PMC Bank had used special codes to hide hundreds of dummy loan accounts of HDIL and of the 1,800 PMC Bank employees, only about 25 could access these loan accounts.
 The regulator had said these few employees used an access code to hide and restrict the visibility of these dummy accounts of the realty developer. HV ANU

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In pics: Thousands of customers of a small bank in India panic after the regulator cracks the whip

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PMC Bank issue raised in Lok Sabha

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RBI doubles withdrawal limit to Rs 1 lakh for PMC Bank depositors

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Scam-hit PMC bank depositors are inspired by Shaheen Bhag protests

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Maharashtra Co-op Bank pitches for branch merger of PMC Bank

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PMC Bank crisis: Administrator to seek valuation of HDIL's aircraft, yacht

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