PMC Bank crisis: The Reserve Bank of India (RBI) increased the withdrawal limit for Punjab and Maharashtra Co-operative Bank (PMC) depositors to Rs 10,000 from the initial Rs 1,000
The Reserve Bank of India (RBI) on Thursday increased the withdrawal limit for Punjab and Maharashtra Co-operative Bank (PMC) depositors to Rs 10,000 from the initial Rs 1,000. In a statement, the apex bank mentioned that the bank was put under regulatory restriction in the interest of depositors. The restriction was required due to major financial irregularities, failure of internal control and wrong reporting of exposures, the bank stated.
RBI stated that it has increased the withdrawal limit for PMC Bank depositors to Rs 10,000 from the earlier Rs 1,000 as stated in the September 23 circular. “Accordingly, vide modified Directive dated September 26, 2019, it has been decided to allow the depositors to withdraw a sum not exceeding Rs 10,000/- (Rupees Ten Thousand Only) (including Rs 1,000/- wherever already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directive dated September 23, 2019,” the statement mentioned.
The apex bank also stated that with the increase in withdrawal to Rs 10,000, 60 per cent of the PMC Bank depositors will now be able to withdraw the entire amount.
“The relaxation has been granted with a view to reducing the hardship of the depositors. The Reserve Bank 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,” stated the RBI.
On Thursday, PMC Bank customers filed a joint police complaint against the bank’s chairman and directors for alleged misappropriation of funds of the depositors. A delegation of account-holders went to Sion police station in central Mumbai and submitted the complaint against officials of the bank, on which the RBI has imposed operational restrictions. The customers stated that at least 14 people were involved in the alleged misappropriation of funds. They also sought an explanation from the management.
Source : Business Today