PMC Bank withdrawal limit raised to ₹25,000 from ₹10,000: RBI

PMC Bank withdrawal limit raised to ₹25,000 from ₹10,000: RBI

Agency News

Giving relief to thousands of customers of Punjab and Maharashtra bank customers, Reserve Bank of India (RBI) on Thursday increased the withdrawal limit to ₹25,000 from ₹10,000.

"The Reserve Bank of India again reviewed the bank’s liquidity position and, with a view to reducing the hardship of the depositors, has decided to further enhance the limit for withdrawal to ₹ 25000," RBI said in a press release.

The new limit will allow 70% of the bank’s depositors to withdraw all of their money, the central bank said in a statement. RBI also said that it has decided to appoint a three-member committee to assist the RBI-appointed administrator of the bank.

"The Reserve Bank has also decided to appoint a Committee of three Members in terms of section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act 1949, to assist the Administrator of Punjab and Maharashtra Cooperative Bank Ltd,", the press release said.

On 23 Septmber RBI, barred the bank from carrying out any operations for the next 6 months. It had initially capped the deposit withdrawal at ₹1000 per account which was relaxed to ₹10,000 in two days and now stands further reduced to ₹25,000. The central bank's stringent action came after the central bank found certain irregularities in the bank, including under-reporting of NPAs and large deposit withdrawals. The to put restrictions on the bank sparked panic among the bank's depositors.