Withdrawal limit on PMC bank hits Mumbai's Gurdwaras

The withdrawal limit imposed on the Punjab and Maharashtra Co-operative (PMC) bank by RBI has hit the functioning of Gurdwaras here in Mumbai, adversely effecting organisation of 'Langar', extending medical facilities to poor and other charitable and day-to-day routine works by them.

Gurmeet Seghal, Trustee of a Gurdwara, said: "I will not take the name of any Gurdwara but Langar is organized two times in which poor people have their meal. The Langar runs on the money that comes from Fixed Deposits (FD) in banks. Where the poor will go now?"

"Medical facilities extended by Gurdwara, the cost of books and fees of poor children, maintenance of Gurdwara, 'Kirtan' and all other expenses are from this money only. The 80 per cent of work of Gurdwara has been affected," he said.

Seghal said that the common man was in a lurch since he would be not able to bear expenses like paying school fees of children, medical treatment of elders etc. "I know families that are celebrating the festival by starving," he said.

"Even taxi-driver will not ferry you and will not show any mercy if you say that you have an account in PMC bank and hence cannot pay. You will not get treatment in hospitals. The situation is worse," he said.

The Reserve Bank of India (RBI) on October 3 enhanced the withdrawal limit for the depositors of Punjab And Maharashtra Cooperative Bank Ltd to Rs 25,000.

The RBI had permitted depositors to withdraw up to Rs 10,000 of the total balance in their accounts. Earlier the RBI had capped withdrawal limit at Rs 1,000 but later on increased it to Rs 10,000 per account.

Last month, the RBI restricted the activities of the 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 borrowing of funds and acceptance of fresh deposits.

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.