The developer has filed for bankruptcy recently.“It is shocking to know that more than two-thirds of the total loans of the bank went to just one customer,’’ said one of the sources cited above. However, the central registrar never acted on the request and, in fact, Singh continued to be chairman until the RBI put directions on the bank,” said the person.As a multi-state co-operative bank, PMC came under the control of the central registrar. So, central bank action on PMC first needed the regulator’s nod.The Mumbai–based cooperative bank, with operations in seven states, collapsed recently and the RBI ordered freezing of operations and imposed limits on withdrawals of funds by depositors. The ED said he will conduct a normal inspection on the bank. But we were shocked when we got the notice with restrictions on the 23rd…How can the RBI find out what is wrong in two days?

Source: Economic Times September 30, 2019 01:30 UTC