Mumbai: Soon after the Reserve Bank of India (RBI) barred the Punjab & Maharashtra Cooperative Bank Ltd (PMC) in Mumbai from carrying out the majority of its routine business transactions for a period of six months, panic waves were observed among the depositors, investors and the city's banking and business circles. PMC Bank ranks among the top 10 cooperative banks in the country. "We are completely ruined," said a customer after the RBI imposed restriction of PMC Bank for six months effective from September 23.

In a terse communique issued late on Monday, RBI Chief General Manager Yogesh Dayal said as per the apex bank's directions, depositors cannot withdraw more than Rs 1,000 from their savings/current/other deposit accounts, leading to huge chaos outside the PMC branches in Mumbai and other parts of India.

The announcement, however, created a havoc among customers and a huge crowd were seen queuing outside PMC branches in order to know the status of the their deposited money. "We are completely ruined. We have no money at home for even basic needs. They should allow us to withdraw more or close down our accounts," news agency IANS quoted a weeping woman customer as saying outside the branch in Bhandup.

Another customer in Borivali said the RBI should penalize the bank management for any irregularities instead of blocking customers' accounts. "This Rs 1,000 limit is ridiculous. We have to make purchases for Navratri, Diwali, pay our children's educational fees and other household expenses. How can we manage ?" IANS reported a fuming man asking.

Described as a multi-state cooperative banking entity, the PMC Bank has branches in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.

The RBI has also restricted the bank from disbursing, agreeing to disburse any payment, whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangements and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI notification of Monday.

"@PMC_Bank says they are under 35A of BR by the @RBI and the thing is I have all my savings stuck in that bank and they say I cannot withdraw my money now.. What do I do.. People here have all their savings in the bank and the bank says they can't help," customer Avinash Sharma tweeted.

Another customer Praful Shah tweeted: "#PMCBank. Its nothing but bankruptcy. My 25 lakhs, saved for daughters' marriages, are now trapped. My lifetime saving getting washed out overnite. Feeling sad."

As per the PMC Bank's latest Annual Report, it has deposits of over Rs 11,617 crore and loans/outstandings of Rs 8,383 crore. Thousands of anguished depositors rushed to the PMC Bank's head office in Bhandup, northeast Mumbai and its branches in different parts of the city to make withdrawals even as police were deployed around the branches to avert any untoward incidents.