RBI extends curbs on PMC till June end

The Reserve Bank of India on Friday said it has extended restrictions on withdrawals and deposits in the scam-hit Punjab and Maharashtra Cooperative Bank till June 30, 2021. “The RBI and PMC Bank are presently engaging with prospective investors in order to secure best possible terms for the depositors and other stakeholders while ensuring long term viability of the reconstructed entity. After superseding the board of the bank, the RBI found that nearly 73% of the bank’s total loan book size of ₹8,880 crore as of September 19, 2019, was exposed to real estate firm Housing Development and Infrastructure Ltd. In an alleged confession letter to the RBI, the bank’s managing director and chief executive officer Joy Thomas had accepted giving loans to HDIL and its related entity to the tune of ₹6,500 crore without informing all the board members.