Home / News / India /  RBI hikes PMC Bank withdrawal limit to 40,000

MUMBAI : The Reserve Bank of India (RBI) on Monday increased the withdrawal limit for customers of Punjab and Maharashtra Cooperative (PMC) Bank to 40,000 and said that this is inclusive of the 25,000 allowed earlier.

“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 40,000, inclusive of 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," said RBI.

The central bank said that based on a complaint filed by the bank against its officials and borrowers associated with the fraud and financial irregularities in the bank and manipulation of its books of accounts, the Economic Offences Wing (EOW), Maharashtra Police has started its investigations into the matter.

“Further, forensic auditors have been appointed by the administrator of the bank to look into the related transactions. The administrator and the three-member advisory committee appointed by the RBI in terms of Section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act, 1949 are working for speedier resolution of the various issues being faced by the bank in conducting its operations," it said.

The RBI added it is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank.

On 23 Septmber RBI barred the bank from carrying out any operations for the next six months. It had initially capped the deposit withdrawal at 1,000 per account which was relaxed to 10,000 in two days and then further increased to 25,000. The central bank's action came after it found certain irregularities in the bank, including under-reporting of non-performing assets (NPAs) and large deposit withdrawals.

ABOUT THE AUTHOR

Shayan Ghosh

Shayan Ghosh is a national writer at Mint reporting on traditional banks and shadow banks. He has over a decade of experience in financial journalism. Based in Mint’s Mumbai bureau since 2018, he tracks interest rate movements and its impact on companies and the broader economy. His interests also include the distressed debt market, especially as India’s bankruptcy law attempts recoveries of billions worth of toxic assets.
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