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PMC Bank withdrawal limit raised to Rs 40,000 from Rs 25,000: RBI

The RBI said it is closely monitoring the developments and will continue to take necessary steps in the interest of PMC Bank depositors

twitter-logo BusinessToday.In   New Delhi     Last Updated: October 15, 2019  | 10:52 IST
PMC Bank withdrawal limit raised to Rs 40,000 from Rs 25,000: RBI
RBI enhances withdrawal limit for PMC Bank depositors to Rs 40,000

In a further relief to Punjab and Maharashtra bank customers, Reserve Bank of India (RBI) on Monday increased the withdrawal limit to Rs 40,000 from Rs 25,000 earlier. The central bank said it is closely monitoring the developments and will continue to take necessary steps in the interest of PMC Bank depositors.

"The Reserve Bank of India, after reviewing the bank's liquidity position and its ability to pay its depositors has decided to further enhance the limit for withdrawal to Rs 40,000, inclusive of Rs 25,000 allowed earlier," the central bank said in a press release.

With the above relaxation, more than 77 per cent of the depositors of the bank will be able to withdraw their entire account balance, it added.

"The financial position of the bank has been substantially impaired due to fraud perpetrated on it by certain persons. As soon as the matter came to the notice of RBI, action was taken in appointing an administrator and ensuring that the bank's available resources are protected and not misused or diverted," the apex bank said.

The RBI has formed a three-member committee under the provisions of Banking Regulation Act to assist the administrator for PMC Bank. Last week, the apex bank had superseded the board of the PMC Bank and appointed Jai Bhagwan Bhoria as the new administrator of the embattled lender with all the powers of the board.

Last week, EOW reportedly attached total assets worth around Rs 4,000 crore, of which around Rs 3,500 crore belong to HDIL and the Wadhawans. The ED separately has been conducting raids on locations associated with HDIL, and seized luxury cars and private jets belonging to the Wadhawans.

PMC Bank has been alleged of providing loans to the embattled HDIL and its subsidiaries despite being aware of the dismal financials of the company. After the matter came to light last September, the Reserve Bank of India had imposed operational restrictions on the lender.

Edited by Chitranjan Kumar

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