PMC bank account holders upset over Rs 1,000 withdrawal limit rule

Following RBI restrictions on activities of Punjab and Maharashtra Cooperative Bank (PMC Bank) for six months, several account holders gathered outside the Sion branch here on Thursday.

The RBI has restricted activities of Punjab and Maharashtra Cooperative Bank (PMC Bank) for six months and asked it to not grant or renew any loans and advances, make any investment or incur any liability, including borrower of funds and acceptance of fresh deposits.

An agitated account holder named Gurucharan Singh said, "I have been the customer of this bank for the last 20 years. I used to deposit five to seven thousand per month so that by the time my daughter's marriage is fixed, I would be secure enough to manage the expenses."

"Now, how am I supposed to manage it with the Rs 1,000 amount they are allowing for the withdrawal, that too over six months? This rule is a mockery of the common man", he added while speaking to ANI.

According to the directions, "depositors will be allowed to withdraw a sum not exceeding Rs 1,000 of the total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI directions," the central bank had said in a statement on Tuesday.

A senior citizen, named as Surender Singh said, "I have never faced any trouble in the last 25 years. But with the imposition of this rule, it would be difficult for the common man and the elderly to manage their expenses as they depend on their savings when it comes to sickness, marriages or festivals."

The directions are imposed in exercise of powers vested with the RBI under sub-section (1) of Section 35A of the Banking Regulation Act 1949 read with section 56 of the act.

PMC Bank is a multi-state scheduled urban cooperative bank with operations in Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. With a network of 137 branches, it ranks among the top 10 cooperative banks in the country.