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Withdrawal Limit For PMC Bank Depositors Raised To Rs 50,000

Mumbai: In additional aid to prospects of scam-hit Punjab & Maharashtra Cooperative (PMC) Financial institution, the Reserve Financial institution on Tuesday enhanced the withdrawal restrict 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 as much as Rs 1,000 of their complete steadiness. Since then the RBI has been elevating the withdrawal restrict.

The depositors can now withdraw as much as Rs 50,000 in a single or a number of tranches until the RBI restrictions are in place.

That is the fourth time the regulator has elevated the withdrawal restrict because it clamped down on PMC Financial institution on September 23, capping withdrawals at Rs 1,000 per buyer, which led to quite a lot of misery and criticism. Final month the restrict 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 financial institution stated in an announcement.

With the above leisure, greater than 78 per cent of the depositors of the financial institution will be capable to withdraw their total account steadiness.

The RBI has additionally been determined to permit the depositors to withdraw from the financial institution’s personal ATMs throughout the prescribed restrict of Rs 50,000.

“This is expected to ease the process of withdrawals,” it added.

The Reserve Financial institution additional stated it was carefully monitoring the place and can proceed to take additional steps as are essential to safeguard the curiosity of the depositors of the financial institution.

Punjab & Maharashtra Cooperative Financial institution, which is among the many prime 10 city cooperative banks, was positioned beneath an RBI administrator on September 23 for six months as a consequence of large under-reporting of dud loans.

The financial institution, over an extended time frame, had given over Rs 6,500 crore in loans to HDIL, which is 73 per cent of its complete advances, and which has turned bitter with a shift within the fortunes of the now bankrupt firm.

Its complete loans stand at Rs 8,880 crore and the deposits at over Rs 11,610 crore. There have been large protests throughout metropolis from the depositors following the RBI motion.

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