PMC Bank Crisis: Withdrawal Limit Hiked But Depositors Unsatisfied

Video Editor: Varun Sharma

The Reserve Bank of India (RBI) increased the withdrawal limit for the Punjab and Maharashtra Co-Operative Bank account holders on 26 September. PMC Bank customers can now withdraw Rs 10,000 from their account instead of Rs 1,000 in the next 6 months.

Depositors who rushed to the bank soon after the RBI directive was made public returned home disappointed. They were told by bank officials that the Central bank is yet to officially notify the PMC Bank. Depositors were asked to return the following day.

“I went to withdraw money for my mother, who is an account holder at the PMC Bank. They told me that they haven’t been notified of the new withdrawal limit yet. RBI is yet to permit them to release Rs 10,000.” 

Raman Verma, account holder’s relative

Sources from the RBI, however, clarified that RBI’s press release announcing the increased limit earlier during the day, was issued only after they had received a confirmation from the PMC Bank communicating to them that they had received the revised direction.

Restrictions were imposed on the Punjab and Maharashtra Co-operative Bank after the RBI found irregularities. Apart from capping the withdrawal limit, the RBI also put restrictions on fresh loans.

“I have Rs 50,000 deposited in this bank. We are so worried. I deposited all my money in the bank. I came here to inquire about the Rs 10,000 withdrawal limit. This will definitely help us survive better but what other choice do we have other than accept whatever is being given? We can’t do anything about this.” 

Abdul Sheikh, Depositor 

While the latest directive comes as a minor relief for depositors who have been queueing outside the bank every day, they insist the government intervenes and ensures all the money is returned to depositors.

“I haven’t even been able to pay my children’s school fees yet. I have been making rounds to the bank all morning. We will have to make do with whatever we have. I just request the government to do something and give us our money back.”

Raju Rayar, Depositor