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PMC Bank: RBI Increases Withdrawal Limit From Rs 1,000 To Rs 10,000

PMC Bank: RBI Increases Withdrawal Limit From Rs 1,000 To Rs 10,000

In a major relief for Punjab & Maharashtra Cooperative (PMC) Bank customers, the Reserve Bank of India today (September 26, 2019) increased the withdrawal limit from Rs 1,000 to Rs 10,000.

"Other terms and conditions of the said Directive shall remain unchanged. With the above relaxation, more than 60% of the depositors of the Bank will be able to withdraw their entire account balance," RBI said in a statement.

"The above relaxation has been granted with a view to reducing the hardship of the depositors. The Reserve Bank is closely monitoring the position and shall continue to take further steps as are necessary to safeguard the interest of the depositors of the bank," RBI said.

Throwing the lives of thousands of traders, self-employed and daily wage earners into disarray, RBI ordered PMC Bank not to do any business for six months and capped depositor withdrawals at Rs 1,000 per account.

As per the directions, the bank was also barred from granting, renewing loans and advances, make any investments, incur any liability, including borrowal of funds or accept fresh deposits, etc., without the prior written approval from RBI.

The regulatory restrictions were imposed on the bank under Section 35A of the Banking Regulation Act, 1949, for a period of six months due to irregularities disclosed to the regulator by the bank management.

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