RBI hikes PMC Bank withdrawal limit to Rs40,000
15 October 2019
The Reserve Bank of India (RBI) on Monday increased the withdrawal limit for depositors of scam-tainted Punjab and Maharashtra Cooperative (PMC) Bank to Rs40,000, which is inclusive of the Rs25,000 allowed earlier.
This means about 77 per cent of the depositors of PMC Bank will be able to withdraw their entire account balance.
“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 Rs40,000, inclusive of Rs25,000 allowed earlier. With the above relaxation, about 77 per cent of the depositors of the bank will be able to withdraw their entire account balance," RBI stated in a release.
Simultaneously, the authorities have seized assets worth Rs3,830 crore in the PMC bank money laundering case.
The Economic Offences Wing (EOW) of the Maharashtra Police started investigations into the financial irregularities in the bank and manipulation of its books of accounts based on a complaint filed by the bank against its officials and borrowers associated with the fraud.
“Further, forensic auditors have been appointed by the administrator of the bank to look into the related transactions. The administrator and the three-member advisory committee appointed by the RBI in terms of Section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act, 1949 are working for speedier resolution of the various issues being faced by the bank in conducting its operations," it said.
The RBI said it is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank.
On 23 September RBI barred the bank from carrying out any operations for the next six months. It had initially capped the deposit withdrawal at Rs1,000 per account which was raised to Rs10,000 in two days and then further to Rs25,000.
The central bank's action was meant to avert large deposit withdrawals after it found certain irregularities in the bank, including under-reporting of non-performing assets (NPAs).