Co-operative banks are riskier, park only part of your money with them

The difference in interest rate between State Bank of India and PMC Bank's 5-year deposit is 100 basis points. Do not go for riskier options like co-operative bank only for the higher return

Depositors would be feeling extremely harassed with the Reserve Bank of India’s (RBI’s) decision to restrict withdrawal from Punjab & Maharashtra Co-operative Bank or PMC Bank. Many depended on the money parked with the bank for their daily lives and businesses. But there was little that the banking regulator could do after finding severe irregularities at the bank.

For the next six months, depositors can only withdraw Rs 1,000 only at one time. If there are schedule payments or equated monthly instalments linked to PMC Bank accounts, they have to be shifted to another bank’s account. In interviews with media, the