Lift curbs on withdrawals by PMC Bank customers, says Nirupam

Congress leader Sanjay Nirupam on Wednesday asked the RBI to lift curbs on cash withdrawals by account-holders of the crisis-hit Punjab & Maharashtra Co- operative Bank (PMC Bank) and said the regulator must fix accountability on individual directors for lapses.

Citing irregularities, including under-reporting of higher NPAs, the RBI on Tuesday placed the urban co-operative bank under operational restrictions such as not allowing it to 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 Rs 1,000 per customer during the six- month period. The curbs include ATM transactions and online banking.

In a letter to RBI Governor Shaktikanta Das, Nirupam said the curbs on withdrawals will badly affect customers heavily dependent on the bank for their financial needs.

"The RBI must lift restrictions on withdrawals from the bank accounts on a priority basis. There are a number of customers whose day-to-day life is dependent on bank transactions.

"There should not be any restrictions on withdrawals It is tragic that the common depositors cannot withdraw their own money due to mismanagement by bank officials."