Depositors panic over RBI’s takeover of major co-operative bank
25.09.2019 - Petr Mazaylo
Depositors panic over RBI’s takeover of major co-operative bank

Depositors panic over RBI’s takeover of major co-operative bank

The Reserve Bank of India’s (RBI) move to take charge of one of the country’s top co-operative banks has left thousands of depositors in the lurch. In effect, it had sparked renewed concerns regarding the health of India’s troubled banking sector.

Depositors of the Punjab and Maharashtra Co-operative Bank (PMC) were informed on Tuesday that the withdrawal amount was limited to 1,000 Rupees ($14.1) for over the next six months. The bank itself has been put under the direction of the central bank and barred from renewing, granting any loans, or making fresh investments without prior approval of the RBI.

“Our staff has worked hard to win the confidence of clients over the years. After this incident, it’ll be very difficult to revive that confidence,” said Sonia Malik, a branch manager at a PMC Bank outlet in New Delhi. She added that employees were worried about their jobs as well.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from Umarkets.com or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue