Big relief to PMC depositors by Diwali! RBI caps withdrawals at Rs 40,000 per account; Assures money safe

Mumbai, October 23: Uearthing the scam in the Mumbai based PMC bank cas, which has deposits of over Rs 11,000 crore, the Reserve Bank of India on Wednesday appointed an administrator over it and capped its withdrawals at Rs 40,000 per account for six months. The apex bank also assured depositors of crisis-hit PMC Bank that their money is safe.

 

 

The RBI officials met a delegation of PMC depositors who have been protesting at Mumbai's Azad Maidan over the central bank's strict withdrawal limits that were imposed on the bank. "We discussed 19 points in detail that included medical expenses, marriage expenses, taxes", depositors said addressing media.

 

"We gave them an ultimatum till October 30. None of us will celebrate Diwali", he added also demanding Rs 25 lakh as compensation for the kin of those who have died due to the PMC crisis. The RBI has meanwhile assured to come up with a solution, and possibly convey it through a press conference or a press release between October 25 and 27.

 

PMC Bank began entering the crisis spectrum after an alleged Rs 4,500 crore scam came to light last month. The RBI has capped withdrawals from the bank at Rs 1,000 and later increased it to Rs 25,000 following protests by depositors. The bank had allegedly lent over 70 per cent of its Rs 9,000 crore in loans to near-bankrupt realty player HDIL.