Reducing the hardships of depositors at PMC bank, RBI hikes withdrawal limit from Rs 1,000 to Rs 10,000

Mumbai, September 26: Providing partial relief to the Punjab and Maharashtra Cooperative Bank customers, the Reserve Bank of India on Thursday moved up increasing the withdrawal limit for PMC depositors to ₹10,000 from ₹1,000 earlier. "This move would allow 60 per cent of the depositors to withdraw their entire balance", it said.

 

 

“The above relaxation has been granted with a view to reducing the hardship of the depositors. The Reserve Bank of India 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", said RBI.

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 its earlier directions. “Accordingly, vide modified directive dated 26 September, 2019, it has been decided to allow the depositors to withdraw a sum not exceeding ₹10,000 of the total balance held in every savings bank account or current account or any other deposit account," it said, adding that other terms and conditions of the said directive shall remain unchanged.

 

According to the RBI earlier directions were necessitated on account of major financial irregularities, failure of internal control and systems of the bank and wrong or under-reporting of its exposures under various off-site surveillance reports to RBI that came to its notice recently.

It is on Tuesday that the apex bank had put restrictions on PMC Bank, amid a probe into accounting lapses. Cash withdrawals were capped at ₹1,000 per account, spreading panic among depositors. PMC Bank has also been barred from making fresh loans and taking deposits.