In September 2019, depositors of Punjab and Maharashtra Co-operative (PMC) Bank received a shock as the Reserve Bank of India (RBI) suspended the bank’s operations, placing withdrawal restrictions and leaving many depositors in a lurch. While the RBI eased withdrawal restrictions over time, the bank will be under moratorium until December 22.
No quick resolution could be found for the bank’s woes, unlike in case of Yes Bank, where the banking regulator acted swiftly to stabilise the private sector lender in March. Such a rescue eludes PMC Bank, as also several other co-operative banks – 44 of which have been placed under moratorium in 2020 alone.
The central government has now promulgated an ordinance that will give RBI more powers to mount such rescue missions for co-operative banks too. In this episode of Simply Save podcast, Moneycontrol's Keerthana Tiwari talks to Preeti Kulkarni to find out more about this ordinance.Tune in for more.