RBI increases withdrawal limit for PMC depositors to Rs 25,000

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The Reserve Bank of India has enhanced withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank. 

The cash withdrawal limit has been increased to Rs 25,000 from Rs 10,000. 

Last week, the RBI barred the PMC Bank from carrying out the majority of its routine business transactions for a period of six months, sparking panic among the depositors and sending shock-waves in the city banking and business circles on Tuesday.

Among other violations, the PMC bank opened a number of dummy accounts to replace the stressed accounts held by Wadhawans-led HDIL.

In a letter to Reserve Bank of India (RBI), the tainted bank's now-suspended Managing Director Joy Thomas admitted to large-scale wrong-doings and the cover-up exercise.

PMC Bank withdrawal limit increased to Rs 25,000: Here's what RBI said

It may be recalled that the Reserve Bank of India had permitted the depositors of Punjab and Maharashtra Cooperative Bank Ltd to withdraw up to ₹ 10,000/- (Rupees Ten Thousand Only) of the total balance in their accounts.

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 ₹ 25000 (Rupees Twenty Five Thousand Only).

With the above relaxation, more than 70% of the depositors of the bank will be able to withdraw their entire account balance. The Reserve Bank is monitoring the position of the bank and will continue to take necessary steps in the interest of depositors.

The Reserve Bank has also decided to appoint a Committee of three Members in terms of section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act 1949, to assist the Administrator of Punjab and Maharashtra Cooperative Bank Ltd.

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