The Reserve Bank of India on Friday extended the restrictions on the Punjab and Maharashtra Cooperative Bank (PMC Bank) from July 1 to December 31.
The RBI said that the extension was done taking into account the time required for completion of reconstruction of PMC Bank.
Last week, the RBI cleared the decks for the takeover of PMC Bank by a consortium of non-bank lenders Centrum Financial Services and fintech startup BharatPe. It granted an in-principle approval to Centrum to set up a small finance bank under on-tap licensing norms.
In September 2019, RBI put severe curbs on PMC Bank, including on cash withdrawals, amid a probe into accounting lapses.