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| 26 September, 2020, 06:22 AM IST | E-Paper
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In huge relief to PMC Bank depositors, RBI increases withdrawal limit to Rs 50,000

Synopsis

The Reserve Bank of India has increased the withdrawal limit to Rs 50,000.

In big relief to depositors, RBI enhances PMC Bank withdrawal limit to Rs 50,000
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In further relief to customers of scam-hit Punjab & Maharashtra Cooperative (PMC) Bank, the Reserve Bank on Tuesday enhanced the withdrawal limit to Rs 50,000 per account from Rs 40,000 earlier.

In September, the RBI had put restrictions on PMC for six months and allowed depositors to withdraw up to Rs 1,000 of their total balance. Since then the RBI has been raising the withdrawal limit.

The depositors can now withdraw up to Rs 50,000 in one or multiple tranches till the RBI restrictions are in place.

This is the fourth time the regulator has increased the withdrawal limit since it clamped down on PMC Bank on September 23, capping withdrawals at Rs 1,000 per customer, which led to a lot of distress and criticism. Last month the limit was enhanced to Rs 40,000 per account.

"The RBI, 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 central bank said in a statement.

With the above relaxation, more than 78 per cent of the depositors of the bank will be able to withdraw their entire account balance.

The RBI has also been decided to allow 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," it added.

The Reserve Bank further said it was closely monitoring the position and will continue to take further steps as are necessary to safeguard the interest of the depositors of the bank.

Punjab & 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 massive under-reporting of dud loans.

The bank, over a long period of time, had given over Rs 6,500 crore in loans to HDIL, which is 73 per cent of its total advances, and which has turned sour with a shift in the fortunes of the now bankrupt company.

Its total loans stand at Rs 8,880 crore and the deposits at over Rs 11,610 crore. There have been massive protests across city from the depositors following the RBI action.

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4 Comments on this Story

AK Marine322 days ago
these idiots want 9 hours now, though the same work can efficiently be done in 2 hours. These idiots will now have 4 hours of Lunch time.
Girija Easwar323 days ago
Crores swallowed by BAHASURS of our MAHAAAN BHARAT. Now under the process of digestion. No human can digest so much CURRENCY NOTES. Only shameless creatures can. GREEDY, LOOTERS, CORRUPT, DECOITS, FRAUDSTORS, Any other words still there, somebody else can continue. I have no more words to express my anger, frustration, disappointment.
Aruun 324 days ago
RBI should fix this mess and assure all depositors that their money in safe in bank by reviving the bank rather than increasing the figures of saving bank account holders who got money which are bare minimum since very few may be keeping big money or life savings in saving bank accounts.