Withdrawal limit for PMC bank depositors raised to Rs 50,000

Mumbai, November 5 () In additional relief for the customers of the Punjab&Maharashtra Cooperative Bank (PMC), the Reserve Bank on Tuesday raised the withdrawal limit to Rs 50,000 on behalf of Rs 40,000 per account.

This is the fourth time the regulator has increased the withdrawal limit since restricting PMC Bank on September 23, limiting withdrawals to 1,000 rupees per customer, which generated much distress and criticism. Last month, the limit was improved to Rs 40,000 per account.

The RBI, after reviewing the bank's liquidity position and its ability to pay its depositors, decided to further increase the withdrawal limit to Rs 50,000, including the Rs 40,000 allowed previously, the central bank said in a statement.

With the above relaxation, more than 78 percent of bank depositors will be able to withdraw the total balance from their account.

The RBI also decided to allow depositors to withdraw from the bank's ATMs within the prescribed limit of Rs 50,000.

This is expected to facilitate the withdrawal process, he added.

The Reserve Bank also said it was closely monitoring the position and will continue to take additional measures as necessary to safeguard the interest of the bank depositors.

The Punjab and Maharashtra Cooperative Bank, which is among the top 10 urban cooperative banks, was placed under an RBI administrator on September 23 for six months due to the lack of massive reports of failed loans.

The bank, over a long period of time, had granted more than Rs 6,500 million in loans to HDIL, which is 73 percent of its total advances, and which has deteriorated with a change in the company's fortune now in bankruptcy. Their total loans amount to Rs 8,880 million and deposits to more than Rs 11,610 million. There have been massive protests throughout the city of depositors following the RBI action. NKD CS MR MR

comments