Punjab and Maharashtra Co-operative Bank attracted restrictions from the RBI over violating the banking guidelines. The Central Bank has strictly mentioned the #PMC bank to allow amount withdrawal of not more than ₹1000 and also the bank won’t be able to get as well as give loans unless the #RBI provides a written approval on the same.
On digging through the RBI Press release that came out today morning, we got to see the #section35A of the Banking Regulation Act of 1949 applied on the PMC bank over violation of section 56 of the same act.
Now, section 56 is related to SLR (Statuary Liquidity Ratio). RBI had mentioned in the section 56 circular, asking corperative banks to maintain a SLR of 20.50%. Anyhow, things are not yet clear. RBI has asked for a six months period to investigate on the same.