RBI hikes cash withdrawal limit for PMC Bank customers to Rs25,000
04 October 2019
The Reserve Bank of India (RBI), meanwhile, further relaxed the cap on withdrawal for PMC Bank customers to Rs25,000 from Rs10,000.
"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 Rs25,000," RBI said in a release.
With this, more than 70 per cent of the depositors of the bank will be able to withdraw their entire account balance. "The Reserve Bank is monitoring the position of the bank, and will continue to take necessary steps in the interest of depositors," it added.
The RBI has also decided to appoint a three-member committee to assist the administrator of Punjab and Maharashtra Cooperative Bank Ltd.
The Serious Fraud Investigation Office (SFIO) will look into the alleged wrong doing by HDIL in the PMC case, expecting to complete the investigation in the next two months.
The PMC case has sparked renewed concerns about the health of the troubled banking sector, which has been rocked by a multi-billion dollar fraud at a state-run lender, the collapse of a major infrastructure lender, bad loan issues at state-run banks and a liquidity squeeze that has hit shadow lenders.
PMC is among the more than two dozen co-operative banks now under RBI administration. PMC Bank, with more than 900,000 depositors and deposits of Rs11,620 crore as of 31 March, however, is by far the largest.
The RBI last week moved to take charge of PMC, and suspended Thomas and the bank's board after uncovering lending irregularities
The RBI has barred the bank from renewing or granting any loans or making investments without prior approval of the central bank, and also limited the amount that depositors can borrow.
Dozens of account holders gathered outside an RBI office in Mumbai on Tuesday to protest against the curbs and demand that the central bank and government intervene to release their funds.