New Evidence Escalates Panic as RBI Still Limits Bank Withdrawals

Customers of a cooperative bank with 137 branches across India still do not know the fate of their money, which was restricted by the central bank. Evidence of alleged bank fraud has since surfaced, but the RBI still insists that India’s banking system is safe, despite many citizens being unable to withdraw their money.

Also read: Panic at 137 Bank Branches as RBI Limits Withdrawals to ₹1,000

RBI Claims Banking System Is Safe

The Reserve Bank of India (RBI) put Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) Ltd. under regulatory restrictions last week, which include limiting customer withdrawals to 1,000 rupees (~$14) for six months. PMC Bank is a major cooperative bank in India with 137 branches in multiple states. After days of protests by panicked customers, the central bank decided to increase the withdrawal limit to a total of 10,000 rupees, with other restrictions remaining unchanged.

However, more than one week later, customers of…