New Delhi, September 30: The Reserve Bank of India (RBI) on Monday issued a notification wherein it said that it has superseded the Board of Punjab and Maharashtra Cooperative Bank or PMC Bank where loan irregularities were found. The RBI appointed Jai Bhagwan Bhoria as the administrator of the PMC Bank. The development comes after the crisis-hit bank's suspended MD Joy Thoman reportedly admitted to the RBI that the bank's actual exposure to the bankrupt HDIL is over Rs 6,500 crore, much above the regulatory limits. After PMC Bank Crisis, Lakshmi Vilas Bank Lands in Soup; Normal Transactions at Branches to Remain Unaffected.

Earlier today, the PMC Bank released a toll-free number to be used by customers for grievances and redressal. "Depositors can access the website www.pmcbank.com for any grievance redressal and call on toll-free number 1800223993 for enquiries," said the bank in a statement. The RBI on September 24 had barred the PMC Bank from carrying out a majority of its routine business transactions for a six-month period. Suspended PMC Bank MD Says Withdrawal Limit for Depositors Could Soon Be Rs 1 Lakh.

The central bank had also allowed depositors to withdraw only Rs 1,000 from their accounts, triggering panic among depositors. The action was taken after the central bank found certain irregularities in the bank, including under-reporting of NPAs and had put restrictions on fresh lending. On September 26, the withdrawal limit for customers was raised to Rs 10,000. However, other restrictions imposed on the PMC Bank were sustained.

The PMC Bank has been barred from granting or renewing loans and advances, making any investments, incurring any liability, including borrowal of funds or accepting fresh deposits, among others, without the prior written approval from RBI. Founded in 1984, the PMC Bank has branches in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.

(The above story first appeared on LatestLY on Sep 30, 2019 06:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).