Current Affairs

RBI has placed PMC Bank under Directions

Current context: The Reserve Bank of India has placed the Punjab and Maharashtra Cooperative (PMC) Bank Limited under Directions.
RBI has placed PMC Bank under Directions
  • As per the Directions, the depositors of the Mumbai based PMC Bank are not allowed to withdraw amount exceeding Rs 1,000 of the total balance in a savings account/current account or deposit account.
  • Other restrictions put on the PMC Bank by RBI are:
    • The bank cannot grant or renew any loans and advances.
    • Can’t make any investment.
    • Can’t incur liability including borrowal of funds.
    • Can’t do acceptance of fresh deposits, without prior approval in writing from the Reserve Bank.
    • Not be able to disburse or agree to any payment towards its liabilities and obligations.
    • Enter into any compromise or arrangement.
    • Sell, and transfer or dispose of any of its properties or assets.
  • The directions are to remain in force for 6 months from the close of business of the bank.
  • RBI has said that the direction is not be construed as a cancellation of a banking licence.

Question: 

Q.1 Which bank has been recently put under Directions by the RBI?
a. Allahabad Bank
b. Punjab National Bank
c. Bank of Baroda
d. Punjab and Maharashtra Cooperative Bank
RBI has placed PMC Bank under Directions RBI has placed PMC Bank under Directions Reviewed by Neha Verma on September 25, 2019 Rating: 5

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