Customers Outraged as India’s Top Bank Puts Curbs on Cash Withdrawals
AP Photo / Ajit SolankiBusiness12:14 24.09.2019Get short URL123Subscribe
New Delhi (Sputnik): Hundreds of panicked customers have created a ruckus on the streets of India’s financial capital after the country’s top financial regulator announced restrictions on cash withdrawals from Punjab and Maharashtra Co-operative (PMC) Bank for the next six months.
Indian’s apex bank – Reserve Bank of India (RBI) – has issued directions on Tuesday in which it instructed depositors of the PMC Bank will be allowed to withdrawals of only up to Rs. 1,000 ($14) daily of the total balance in every bank account for the next six months. PMC Bank has deposits of over $1.5 billion and advances of over $1.1 billion, as of March 2019.
RBI has also directed the bank to stop almost all banking activities with effect immediately, including lending, taking advances, making any investment, or incurring any liability.
The order sending shock waves in the city trading community and they queued up in front of bank branches.
One of the traders, Praful Shah, claimed that all his savings, around Rs.2500,000 ($35,300) he’d saved for his daughters’ marriages, are now frozen. “My lifetime saving getting washed out overnight. Feeling sad,” a furious and dejected Shah said.
Some of the annoyed account holders blamed RBI for taking decisions without considering customers’ agony.
“Sitting in AC room you can’t understand problems of people having lacks of rupees in bank you need to give chance for withdrawing money our life is dependent on bank and suddenly you restrict bank,” said another bank customer Karan Thakkan.
Nevertheless, RBI has clarified the order should not, per se, be construed as cancellation of the company’s banking licence. The bank will continue to undertake its banking business with restrictions till further notice/instruction.