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RBI enhances withdrawal limit for PMC Bank depositors to Rs 25,000

The RBI promised to keep an eye on the position of the Punjab and Maharashtra Co-operative Bank and take necessary steps in the interest of its depositors

twitter-logo BusinessToday.In   New Delhi     Last Updated: October 3, 2019  | 22:06 IST
RBI enhances withdrawal limit for PMC Bank depositors to Rs 25,000

The Reserve Bank of India (RBI) has once again enhanced the withdrawal limit for depositors of Punjab and Maharashtra Co-operative Bank to Rs 25,000 from Rs 10,000. The central bank promised to keep an eye on the position of the co-operative bank and take necessary steps in the interest of PMC Bank depositors.

"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 Rs 25,000," RBI said in statement on Thursday.

With the above relaxation, more than 70 per cent of the depositors of the bank will be able to withdraw their entire account balance, the central bank further added.

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 On Monday, the apex bank had superseded the board of the PMC Bank and appointed Jai Bhagwan Bhoria as the new administrator of the embattled lender with all the powers of the board.

ALSO READ:PMC Bank crisis: How to avail of more than Rs 1 lakh deposit insurance cover

The Economic Offences Wing of the Mumbai Police has arrested HDIL promoters Rakesh Kumar Wadhawan and Sarang Wadhawan in connection with the PMC Bank case. The agency also attached properties worth Rs 3,500 crore in the relation to the case.

The Mumbai Police had lodged an FIR against the former bank management and promoters HDIL in the PMC Bank case. Rakesh is the executive chairman of HDIL, whereas Sarang is the managing director of the company. The government had also issued a look-out circular against the two executives to stop them from leaving the country. The FIR also named PMC Bank's former Chairman Wayam Singh and now-suspended Managing Director Joy Thomas.

The RBI had placed operational restrictions on the PMC Bank on September 23, citing irregularities in loans given to some companies for six months. The police complaint in the matter reportedly alleged that PMC Bank created more than 21,000 fake accounts to hide the loans. News agency Reuters had reported that a single realty firm and its group companies were the beneficiaries of 44 loans by PMC Bank.

ALSO READ:PMC Bank crisis: How much should a depositor get if bank goes bust?

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