RBI extends restrictions on PMC Bank for three more months

Reserve bank of India extended the regulatory restrictions on Punjab and Maharashtra Cooperative Bank (PMC) Bank by another three months.
The central bank also added that it has been in talks with various authorities for the quick sale of securities and recoveries of loans.
The validity of the directive dated 23 September 2019, stands modified from 23 March 2020 to 22 June 2020.
RBI imposed restrictions on PMC bank under Section 35A of the Banking Regulation Act.
This was aimed at preventing a run on the bank that could end up endangering the stability of the entire financial system because of a contagion effect.
These curbs were put in place after the central bank saw gross under-reporting of bad loans, financial irregularities by the bank’s officials, and failure of internal controls and systems.