What happens to your money if RBI puts restrictions on your bank?

RBI addresses the PMC crisis by restricting its business operations, the cause and effects of the PMC episode.

Recently, the Reserve Bank of India ordered the Punjab and Maharashtra Co-operative (PMC) Bank not to engage in any business for six months, following the discovery of Rs 4,355-crore scam. They have also set a limit on withdrawals from its branches. PMC Bank will need prior approval in writing from the Reserve Bank, to grant or renew any loans and advances, make any investment, incur any liability including disbursal of funds and acceptance of fresh deposits. The direction shall remain in force from the close of business of the bank on 23 September 2019. This RBI direction doesn’t imply the cancellation of a banking licence and the bank will continue to undertake banking business with restrictions till further notice. This may include modifications depending upon circumstances. This dir...

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