Why RBI put restrictions on PMC Bank, what happens to deposits when such restrictions are placed?

The lives of thousands of account holders of Punjab and Maharashtra Co-operative Bank were thrown into disarray. This is because RBI ordered PMC Bank not to engage in any business for six months and capped depositor withdrawals. Shambhavi Mehrotra of ET Online tells you why RBI put restrictions on the bank and happens to your deposits if RBI places PMC-like restrictions on your bank? (Additional Inputs: Mumbai Mirror)

► For business news on the go, download ET app:

Follow ET on:

[Sisyphus]

Spread you risk across several banks? Is she equating Savings/FD investment with high risk investments like equity and mutual funds? That's preposterous! People don't park their money in bank accounts with an intent to take risks and make more money. They are risk averse and are just looking for safety of their funds so that they can utilize it when needed.

[ashdDesai]

RBI will ruins PMC, chalu karo jaldi. Customer of PMC will run to other bank to open their account. Please do not spoil dignity of PMC bank.

[kawaljeetjolly]

Crisis' the man who has crisis' PMC is whole family will be crisis' immediately we want our money with out family whole world will die

[KASHIFKHAN-bjyd]

भक्त बनाना आसान नही है,
थूक का दरिया है, चाट के जाना है

[sudeshchandraagarwal]

Black sheep of bank offenders must be punished, money retrieved, nation back on devlpmnt.they did phone banking, not on posts, but sinned.