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RBI Raises Withdrawal Limit To Rs 40,000 For PMC Bank Account Holders

PMC Bank news: With the above relaxation, more than 77% of the depositors of the bank will be able to withdraw their entire account balance, RBI said.

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RBI Raises Withdrawal Limit To Rs 40,000 For PMC Bank Account Holders

PMC Bank news: This is the third time RBI has increased the withdrawal limits for account holders.


Highlights

  1. RBI has barred PMC Bank from renewing or granting any loan
  2. RBI has imposed restrictions citing major financial irregularities
  3. The central bank has said it is "closely monitoring the developments"

The Reserve Bank of India (RBI) raised withdrawal limit for account holders of the stressed Punjab and Maharashtra Co-Operative Bank or PMC Bank to Rs 40,000 from earlier withdrawal limit of Rs 25,000. "The Reserve Bank of India, 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 40,000, inclusive of Rs 25,000 allowed earlier," the central bank said in a statement. With the above relaxation, more than 77 per cent of the depositors of the bank will be able to withdraw their entire account balance, RBI added. (Also read: RBI To Keep Depositors On Top Priority, Says Nirmala Sitharaman)

This is the third time the regulator has increased the withdrawal limits since it clamped down on the bank on September 23 and capped withdrawal limit at Rs 1,000 per customer for six months.

The RBI said it is "closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank".

A Mumbai court on Monday also extended police custody of the two Dewan Housing Finance Corporation Limited (DHFL) officials and PMC Bank former chairman in connection with the multi-crore scam at the bank.

Meanwhile, based on a complaint filed by the bank against its officials and borrowers associated with the financial irregularities in the bank and manipulation of its books of accounts, the Economic Offences Wing, Maharashtra Police has started its investigations into the matter. Further, forensic auditors have been appointed by the administrator of the bank to look into the related transactions.

Last month, RBI imposed restrictions on PMC Bank citing "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". Putting the co-operative bank under its lens, the RBI barred PMC Bank from renewing or granting any loans, or making investments without its prior approval.



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