RBI raises withdrawal limit for PMC Bank customers to Rs10,000
27 September 2019
The Reserve Bank of India (RBI) today announced a 10-fold increase in the maximum withdrawal limit for savings and current account holders of Mumbai-based Punjab and Maharashtra Cooperative Bank Limited (PMC) to Rs10,000, offering a major relief to thousands of customers.
On Tuesday, the RBI had put the urban cooperative bank under administration and limited cash withdrawal by its customers to Rs1,000. The restrictions, which were imposed for six months, also barred the bank from disbursing any fresh loan or open a fixed deposit account during the period.
“On a preliminary assessment of the bank’s latest depositor and liquidity profile as furnished by the Administrator, RBI has decided, in the interest of depositors, to review the directions. Accordingly, vide modified directive dated September 26 2019, it has been decided to allow the depositors to withdraw a sum not exceeding Rs10,000 (including Rs1,000 wherever already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account by whatever name called,” RBI stated in a release.
The RBI said other terms and conditions stipulated in the RBI Directive dated 23 September 2019 shall remain unchanged.
With the relaxation, more than 60 per cent of the depositors of the bank will be able to withdraw their entire account balance, RBI said.
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, it added.
The direction to the bank to “not grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI directions dated September 23, 2019,” still holds.