RBI further relaxes withdrawal limit for PMC Bank accounts to Rs.25,000

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Mumbai: A week after relaxing withdrawal limit to Rs.10,000 from Rs. 1000, the Reserve Bank of India on Thursday further relaxed the limit to Rs. 25,000.

“The Reserve Bank of India 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 Rs. 25000 (Rupees Twenty Five Thousand Only). With the above relaxation, more than 70% 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” RBI said.

The Reserve Bank has also decided to appoint a Committee of three Members in terms of section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act 1949, to assist the Administrator of Punjab and Maharashtra Cooperative Bank Ltd.

RBI on 23rd September had put several restrictions on the bank including squeezing   of withdrawal limit to Rs. 1000 The action was taken due to 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 had came to the Reserve Bank’s notice.

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