Tiny and unlisted as it is, PMC is a popular option for small savers in Maharashtra, whose capital Mumbai is the nation’s financial hub.
PMC Bank came under stress due to alleged financial irregularities forcing the RBI to impose restriction on it.
The admission came in after a board member leaked the actual balancesheet details to the RBI, said a source.
RBI has capped cash withdrawal at Rs 1,000 per customer during this period and banned the bank from any fresh lending.
The central bank and barred from renewing, or granting any loans, or making investments.
No reasons were specified by the central bank for its restrictions on PMC Bank.