Mumbai, March 21: The regulatory sanctions imposed on Punjab and Maharashtra Cooperative (PMC) bank was extended by another three months by the Reserve Bank of India (RBI). The sanctions, which were slapped on the bank since September 23, 2019, has been extended for at least the next three months. The restrictions would continue to remain in effect till June 22, the central bank said in a statement. PMC Bank Crisis: RBI's Move on Withdrawal Limit Reduces Outstanding Deposits by Only 10%, Clampdown Continues.

During the stated period, PMC Bank customers would be barred from withdrawing more than Rs 50,000 from their bank accounts. Further, the cooperative lender would not be allowed to extend any fresh loans or transfer stakes. The bank's management would remain under the RBI's control till further orders.

"Regulatory restrictions put on Punjab & Maharashtra Cooperative (PMC) Bank have been further extended for 3 months till June 22. RBI is also directly and through Administrator, discussing with various authorities on expeditious sale of securities and recoveries of loans," said the statement issued by the Reserve Bank of India.

Update by ANI

The crisis-hit PMC Bank was among the country's top five urban cooperative lenders. The bank has a total of 137 branches with at least 51,000 members. It's operations were spread to seven states, including Maharashtra, Delhi and Punjab. The total deposits in the bank was around Rs 11,617 crore. Several housing societies had opened their accounts with the lender to stash the monthly collected maintenance amounts.

(The above story first appeared on LatestLY on Mar 21, 2020 06:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).