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PMC Bank: RBI increases withdrawal limit to Rs 50,000 from Rs 40,000

BusinessToday.In     November 5, 2019

In a further relief to Punjab and Maharashtra Cooperative (PMC) Bank customers, Reserve Bank of India (RBI) on Tuesday increased the withdrawal limit to Rs 50,000 from Rs 40,000 earlier. The central bank also allowed the depositors to withdraw from the bank's own ATMs within the prescribed limit of Rs 50,000, a move which is expected to ease the process of withdrawals.

"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 50,000, inclusive of Rs 40,000 allowed earlier," the central bank said in a press release.

Earlier on October 14, the central bank had permitted the depositors of PMC Bank to withdraw up to Rs 40,000 of the total balance in their accounts.

Also Read: PMC Bank customers may get money back; assets worth Rs 3,500 crore to be sold

With the above relaxation, more than 78 per cent of the depositors of the bank will be able to withdraw their entire account balance, it added.

The central bank said it was closely monitoring the developments and would continue to take necessary steps in the interest of the depositors of the bank.

Also Read: PMC Bank crisis: Here's how the troubled lender became a stakeholder in NPCI

The RBI has formed a three-member committee under the provisions of Banking Regulation Act to assist the administrator for PMC Bank. Last month, the central bank had superseded the board of the PMC Bank and appointed Jai Bhagwan Bhoria as the new administrator of the embattled lender with all the powers of the board.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, the apex bank had asked the Economic Offences Wing (EOW) of the Mumbai Police, who is investigating the PMC bank scam, to release attached properties of the troubled bank so that they can be auctioned. The ED has attached movable and immovable assets of HDIL, its directors, promoters, PMC Bank officials and others in the case. The proceeds of the auction will be used to provide relief to the aggrieved account holders.

Edited by Chitranjan Kumar

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