InvestorQ : Is it true that the restrictions on PMC Bank have been extended for more time? Is that not unfair? Yes bank was resolved in 15 days flat?
Juvina Maggie made post

Is it true that the restrictions on PMC Bank have been extended for more time? Is that not unfair? Yes bank was resolved in 15 days flat?

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Angel dcosta answered.
10 months ago
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You are right in that RBI has extended regulatory restrictions on PMC Bank by another 3 months. According to the press release of the RBI, this extension has been made in the larger interests of depositors and the stability of the banking sector. RBI is currently working out a scheme to revive the bank. This ban will now be valid till 22 June, 2020. It may be recollected that the restrictions are now 6 months old because on 24 September 2019, RBI had imposed restrictions on PMC bank under Section 35A of the Banking Regulation Act to prevent a run on the bank. There was also a case of gross under reporting of loans and the fraud in which HDIL was deeply entrenched. It is a little unfair but also warns depositors about the risks of such cooperative banks.

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