The Reserve Bank of India (RBI) on Saturday extended the six-month regulatory restriction on crisis-ridden Punjab and Maharashtra Cooperative Bank for three months till June 22, 2020, as itis still working on the revival of the bank.
The RBI had placed regulatory curbs on the multi-state urban cooperative bank on September 23, 2019, after finding out certain financial irregularities, hiding and misreporting of loans given to real estate developer HDIL.
"It is hereby notified for the information of the public that the validity of the directive dated September 23, 2019, as modified from time to time, has been extended for a further period of three months from March 23, 2020 to June 22, 2020," the RBI said in a release on Saturday.
The restrictions on the bank included barring the bank from giving fresh loans and acceptance of fresh deposits. Depositors were also not allowed to withdraw more than Rs 1,000 initially from their accounts but the limit was later relaxed to Rs 50,000, helping 78 per cent of the depositors to withdraw their entire account balance.
The RBI said it has been closely monitoring the situation at the bank and has been holding regular meetings with the administrator and the advisory committee of the bank.
In the interest of the depositors and the stability of the cooperative banking sector, the RBI, in consultation with various stakeholders and authorities, is trying to work out a scheme for revival of the bank, it said.
The central bank superseded the board of PMC Bank and had appointed J B Bhoria, an ex-RBI official, as its administrator.
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The RBI further said unlike in the case of commercial banks, it as no powers to draw up an enforceable scheme of reconstruction of a cooperative bank.
The statement comes at a time when the RB, in matter of 13 days, came out with a rescue plan for private lender Yes Bank.
The central bank had imposed a moratorium on Yes Bank on March 5 but lifted it on March 18.
The RBI further said it is discussing with various authorities on expeditious sale of securities and recoveries of loans of PMC Bank.
Due to various factors including legal processes, tangible outcomes are taking some time, it said.
The RBI-appointed administrator of the scam-hit bank has been trying to sell aircraft and yachts belonging to HDIL group firms owned by Rakesh Wadhawan and his son Sarang, the prime accused in the Rs 6,500-crore scam at the co-operative lender.