Mumbai : In a relief to the customers of Punjab and Maharashtra Cooperative Bank (PMC Bank), the Reserve Bank of India today increased the withdrawal limit to Rs. 10,000.
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 came to the Reserve Bank’s notice recently.
“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 the Directions. Accordingly, vide modified Directive dated September 26, 2019, it has been decided to allow the depositors to withdraw a sum not exceeding Rs.10,000/- (Rupees Ten Thousand Only) (including Rs.1,000/- wherever already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directive dated September 23, 2019. Other terms and conditions of the said Directive shall remain unchanged. With the above relaxation, more than 60% of the depositors of the bank will be able to withdraw their entire account balance. The above relaxation has been granted with a view to reducing the hardship of the depositors. The Reserve Bank 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” RBI said in a statement.