The Reserve Bank of India on Tuesday enhanced the withdrawal limit for depositors of the Punjab and Maharashtra Cooperative (PMC) Bank to Rs 50,000. With the latest relaxation, more than 78 per cent of the depositors of the bank would be able to withdraw their entire account balance, the central bank said in a statement.
“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 50,000, inclusive of Rs 40,000 allowed earlier,” the statement said.
The RBI also allowed the depositors to withdraw from the bank’s own ATMs within the prescribed limit of Rs 50,000. This is expected to ease the process of withdrawals.
The top bank on October 14 had permitted the depositors of the PMC Bank to withdraw up to Rs 40,000 of the total balance in their accounts.
The RBI said it 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.
Meanwhile, the depositors of the PMC Bank held a demonstration outside the RBI office in Mumbai on Tuesday.
The RBI had restricted the activities of the PMC Bank in September and asked it not to grant or renew any loans and advances after an alleged fraud of Rs 4,355 crore came to light.
