RBI raises withdrawal limit to Rs 40,000 for PMC bank account holders

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Reserve Bank has enhanced the withdrawal limit for the account holder of Punjab and Maharashtra Cooperative Bank or PMC Bank to 40 thousand rupees from 25 thousand rupees. This is the third time, RBI has raised the withdrawal limit since its clamp down on PMC Bank last month. In a statement, RBI said, after reviewing the bank's liquidity position and its ability to pay its depositors, it has decided to further enhance the limit. With the revised relaxation, about 77 per cent of the depositors of the bank will be able to withdraw their entire deposits.

Finance Minister Nirmala Sitharaman yesterday said that she is closely monitoring the developments at PMC Bank, and the RBI governor has assured to protect customers' interest.

AIR correspondent reports that providing further relief to the customers, the move comes after the weekend assurance by Finance Minister Nirmala Sitharaman. She had said that she will urge the Reserve Bank to look into the woes of the depositors of the cooperative bank with urgency. The irate depositors had met her in Mumbai.

Punjab & Maharashtra Cooperative Bank, which is among the top 10 urban cooperative banks, was placed under an RBI administrator on September 23 for six months due to massive under-reporting of dud loans. The bank had come on regulatory radar after Housing Development & Infrastructure Ltd (HDIL) and its directors failed to repay a Rs 4355 crore putting the bank under liquidity stress. The regulator had capped deposit withdrawals first at Rs 1,000, which was subsequently increased to Rs 10,000 and Rs 25,000. (AIR)