PMC Bank collapse: Business comes to a near stoppage for current account holders, traders rely on cash reserve

His last big gig was a birthday party, for which he accepted payment by cheque dated September 24. He deposited the cheque in his account at Punjab and Maharashtra Cooperative (PMC) Bank’s GTB Nagar branch, but the payment has not been credited.

For traders with current accounts with the PMC Bank, the problems at the bank have meant a near total stoppage of their businesses, as cheques remain unpaid, their daily operations flatlined and business now dependent on whatever little can be transacted in cash.

Satnam Singh (62), who runs a real estate agency at GTB Nagar, said: “The rent of my office space is pre-paid in six post-dated cheques. Now, will I be held guilty of giving bounced cheques? I keep coming everyday to the bank just to clarify, but no one seems to know.”

Singh, who works as a broker along with his sons, runs his business through a current account at the GTB Nagar branch. “My wife and sons opened savings account, but I didn’t see the point of having two accounts,” he said. Now, his entire business is jeopardised. “If I get labeled as a man who gives bounced cheques, property owners will not want to work with me.”

When Jassi found out about the restrictions on the bank, he flew into a rage. “I was standing in line to deposit my cheque and wondering why so many people had come to the bank. Suddenly, there were rumours that the bank is closing down and I looked at the cheque of Rs 55,000 in my hand. The next thing I knew, I was shouting and ready to break things. What could I do? I thought I had lost everything I own,” he said.

His worry is that even if the restrictions are lifted six months later, the cheque would be redundant. “I can ask my customer to pay me again, but not everyone can be trusted,” he added.

Sweetmeats store owner Kripan Sodhi (45) said his dealers are all demanding payments. “I don’t produce any of the sweets, they are ordered just like chocolates and dry fruit boxes,” he said.

“It feels like demonetisation, when despite having money, we faced huge problems. But at least that was for a cause. This time, it is sheer negligence on part of the bank,” Sodhi added.

While his store offers online and cashless payment facilities, he is now accepting only cash payments. “I am not even thinking about my family. I should be able to pay the boys who work for me. I have already sent memos to all my suppliers asking them to wait for payment, but they are desperate too. Eventually, I might have to either sell something or take a loan,” Sodhi said.

Harnam Gill (63), a retired defence personnel who runs a garage in Sion, said he has never borrowed money but may have to do so now to keep the business afloat. “I never wanted to ask my children for money, but now I will have to… My son and I had a fight almost a couple of years ago. He had closed his and his wife’s accounts at PMC bank and moved to a multi-national bank. I think it is time for us old birds to retire from the world and spend our time in gurdwaras,” he added.