Mumbai: The Reserve Bank of India (RBI) has banned the functioning of Punjab and Maharashtra Co-operative (PMC) bank due to financial irregularities. In an order issued on September 23, 2019, the RBI stated that this step has been taken due to lack of transparency in banking operations and in many cases not following the banking guidelines of RBI.

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It is worth noting that PMC Bank has 103 branches in Maharashtra, 15 in Karnataka, 6 in Goa and 6 branches in Delhi. Millions of customers have deposited their money in the bank. RBI has prohibited the bank from granting any new loan without prior permission. RBI has also prohibited loan renewal. As of March 2019, the bank has deposits of Rs 11,617.34 crore. The bank has given a loan of Rs 8,383.33 crore.

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Now after the RBI decision, the customers of PMC bank will be able to withdraw only one thousand rupees from their account in a day. The bank is not barred from making any new investment nor will the bank be able to deposit any money. The bank cannot even take any loan. The bank is also barred from selling its assets or transferring one's name.

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