'What kind of a joke is this': RBI sanctions on PMC Bank get slammed on Twitter1 min read . Updated: 24 Sep 2019, 10:35 PM IST
- RBI placed the urban co- operative bank under operational restrictions
- One of the major restrictions affecting customers is capping withdrawals at ₹1,000 per customer during the six- month period
New Delhi: Gross underreporting of bad loans is one of the primary reasons behind Reserve Bank of India’s (RBI) restrictions on Punjab and Maharashtra Cooperative (PMC) Bank, said two people aware of the development, adding that RBI is currently looking into the books of the bank.
According to the first person, the bank’s management has come clean and the central bank has therefore put restrictions on withdrawals as a precautionary measure to avoid a run on the bank. While the bank’s gross bad loans, as per its FY19 annual report, was at 3.76% of its advances, the bank has now disclosed that it is much higher, the person added.
Chaos reigned outside the Sion branch of the Mumbai-based PMC Bank on Tuesday as depositors thronged to withdraw their money after the Reserve bank of India put restrictions on the bank.
RBI on early Tuesday placed the urban co- operative bank under operational restrictions such as not allowing it give fresh loans, accept fresh deposits and borrowing of funds, among others for six months. One of the major restrictions affecting customers is capping withdrawals at ₹1,000 per customer during the six- month period. The curbs also include ATM transactions and online banking.
People vented out their fury on Twitter at the turn of events. Here are a few tweets illustrating the kind of anger being directed at the authorities on the social media platform.
Some Twitter users even made memes to highlight the precarious situation of the customers.