RBI Raises PMC Bank Withdrawal Limit to Rs 25,000 From Rs 10,000

The initial limit put in place was Rs 1,000 per account.

Customers stand outside the Punjab and Maharashtra Cooperative Bank at GTB Nagar in Mumbai on Tuesday.

(Photo: PTI)

The Reserve Bank of India (RBI) on Thursday, 3 October, raised the withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd to Rs 25,000 from the previous limit of Rs 10,000.

“The Reserve Bank of India again 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 25,000,” the central bank said in an official release.

Curbs on withdrawal were put in place by RBI alongside other restrictions after the RBI found irregularities, including under-reporting of NPAs in PMC Bank.

Initially, the limit was pegged at Rs 1,000 per account over a period of six months, which was later revised to Rs 10,000 on 26 September.

Thursday’s release also stated that the latest revision in withdrawal limit will ensure that 70 percent of the depositors of the bank will be able to withdraw their entire account balance.

RBI also said that it is “monitoring the position of the bank and will continue to take necessary steps in the interest of depositors.”

(This is a developing story. More details awaited)