RBI Imposes Operational Restrictions on Punjab and Maharashtra Co-operative Bank

Guwahati, September 26, 2019:

Reserve Bank of India (RBI) has put operational restrictions on Punjab and Maharashtra Co-operative Bank (PMC), following an investigation of alleged charges of irregularities.

The apex bank has capped the withdrawals at Rs. 1000 per account and put a bar on issuing fresh loans.

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It is to be mentioned here that the RBI had been noticing frequent negligence on the part of the two cooperative banks in following its guidelines.

RBI has been insisting cooperative banks to adopt the RBI’s Know Your Client (KYC) norms from the past few years. The idea of a stringent KYC process is to keep an eye on the money laundering.

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The Punjab and Maharashtra Co-operative Bank is a 36-year-old institution that is regulated by the RBI and registered under the Cooperative Societies Act. The bank has 137 branches spread over half a dozen states in India.

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