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Depositors panic over RBI’s takeover of major co-operative bank
The Reserve Bank of India’s (RBI) move to take charge of one of the country’s top co-operative banks has left thousands of depositors in the lurch. In effect, it had sparked renewed concerns regarding the health of India’s troubled banking sector.
Depositors of the Punjab and Maharashtra Co-operative Bank (PMC) were informed on Tuesday that the withdrawal amount was limited to 1,000 Rupees ($14.1) for over the next six months. The bank itself has been put under the direction of the central bank and barred from renewing, granting any loans, or making fresh investments without prior approval of the RBI.
“Our staff has worked hard to win the confidence of clients over the years. After this incident, it’ll be very difficult to revive that confidence,” said Sonia Malik, a branch manager at a PMC Bank outlet in New Delhi. She added that employees were worried about their jobs as well.
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