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A Case Study Of Punjab & Maharashtra Cooperative Bank (PMC) Crisis And The Regulatory Response

R. Mathan Kumar & Ch. Shoumik Chowdary, Bennett University


Indian rural and urban cooperative banks are now crucial to the development of the country's financial inclusion. Since their founding, they have made numerous historical advances and contributed to the empowerment and security of Indians by providing convenient financial services. The Co- operative Banks' journey has not been easy; they have encountered difficulties and administrative hiccups at numerous levels. In light of its rapidly deteriorating financial status, the current study aims to assess the challenge that the Punjab Maharashtra Cooperative Bank experienced. This made it necessary for the Reserve Bank of India (RBI) and the Indian government to act right away in order to safeguard depositor interests and uphold public confidence in Indian banking through regulations.

This paper attempts to examine the Punjab & Maharashtra Co-operative Bank’s financial failure case with a focus on the risk involved as well as the contributing factors to the failure. The regulatory response is also examined in the paper.

Keywords: Financial inclusion, cooperative bank, Non-Performing assets & ethics.


Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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