RBI extends curbs on PMC Bank by 3 months as it works on revival plan

RBI has been talking to other authorities on sale of securities and loan recovery; Unlike in commercial banks, it has no powers to evolve an enforceable reconstruction plan for a co-op bank

The Reserve Bank of India has extended the restrictions on conducting business on fraud hit Punjab and Maharashtra Co-operative Bank (PMC Bank) by three months till June 22.

The Mumbai-based urban cooperative bank was placed under moratorium from close of business on September 23, 2019 to protect depositor's interest.

RBI is trying to work out a scheme for revival of the bank in the interest of the depositors and the stability of the cooperative banking sector.

In order to take this forward, it is considered necessary to extend the aforesaid moratorium, RBI said in a statement today.

The Reserve Bank has also been, directly