Enhancing once again the quantum of relief to the customers of Punjab and Maharashtra Cooperative (PMC) Bank, the Reserve Bank of India (RBI) on Tuesday increased the withdrawal limit for affected bank depositors from Rs 40,000 to Rs 50,000 and allowed them to withdraw from the bank’s own ATMs within the prescribed limit of Rs 50,000.
Wednesday’s was fourth enhancement in the limit of cash withdrawn from the crisis-hit PMC Bank.
In a Press release put out on Tuesday, the apex bank stated, “The RBI, 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. With the above relaxation, more than 78% of the depositors of the bank will be able to withdraw their entire account balance”
“It has also been decided to allow the depositors to withdraw from the bank’s own ATMs within the prescribed limit of Rs 50,000. This is expected to ease the process of withdrawals,” the release said.
“The RBI 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,” the release added.
On September 23 placed Punjab & Maharashtra Cooperative (PMC) Bank Ltd under regulatory restrictions, thus barring the bank from carrying out routine and major financial transactions, including withdrawal of cash exceeding Rs 1,000 by each of the depositors, for a period of six months.
The RBI had said that the directions imposing major restrictions on the PMC Bank had been “necessitated” because of account of “major financial irregularities, failure of internal control and systems of the bank and wrong/under-reporting of its exposures under various Off-site Surveillance reports to RBI that came to the Reserve Bank’s notice recently”.