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RBI increases withdrawal limit for PMC Bank depositors from Rs 25,000 to Rs 40,000

The economic offences wing of Mumbai Police jaarrested Rakesh Wadhwan and his son Sarang Wadhwan, directors of HDIL.

ET Online|
Updated: Oct 14, 2019, 08.04 PM IST
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PMC Bank mess: RBI hikes withdrawal limits for depositors to Rs 40,000
PMC Bank mess: RBI hikes withdrawal limits for depositors to Rs 40,000
Providing further relief to the customers, The Reserve Bank of India (RBI) today further eased the restrictions on depositors of Punjab & Maharashtra Cooperative Bank (PMC Bank), by increasing the withdrawal limit to Rs 40,000 from earlier Rs 25,000.

The bank had come on regulatory radar after Housing Development & Infrastructure Ltd and it's directors failed to repay a Rs 4355 crore loan taken from PMC Bank putting the bank under liquidity stress. This prompted RBI to appoint an administrator for oversee business under restrictions.

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 40,000/- (Rupees Forty Thousand only), inclusive of Rs 25,000 allowed earlier. With the above relaxation, about 77% of the depositors of the bank will be able to withdraw their entire account balance, read a statement from the central bank.

The statement further read- The financial position of the bank has been substantially impaired due to fraud perpetrated on it by certain persons. As soon as the matter came to the notice of Reserve Bank of India, action was taken in appointing an Administrator and ensuring that the bank’s available resources are protected and not misused or diverted.

The economic offences wing of Mumbai Police jaarrested Rakesh Wadhwan and his son Sarang Wadhwan, directors of HDIL.

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