The Reserve Bank of India placing Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) under directions for six months, has rattled depositors, who will not be able to withdraw more than ₹1,000 of the total balance in every savings bank account or current account or any other deposit.
As of March 2019, PMC Bank had outstanding deposits of Rs 11,600 crore, of which demand deposits were nearly Rs 2,300 crore and the balance were term deposits.
If you are a depositor in another cooperative bank, the recent incident is bound to have distressed you. But PMC Bank is not an isolated case. The regulator has time and again issued directions against other co-operative banks. While it may not be right to paint all cooperative banks with the same brush, there are a few points to be kept in mind before parking money in your friendly neighbourhood cooperative bank.