The Reserve Bank of India (RBI) on Tuesday increased the withdrawal limit for customers of Punjab and Maharashtra Cooperative (PMC) Bank to 50,000.

“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 50,000, inclusive of 40,000 allowed earlier. With the above relaxation, more than 78% of the depositors of the bank will be able to withdraw their entire account balance," a central bank statement said.

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 September, 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 and later 40,000.

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

Close
×
My Reads Logout