RBI increased the Withdrawal Limit for the PMC Customers

For the relief of the crisis-hit Punjab & Maharashtra Cooperative (PMC) Bank customers, the Reserve Bank of India has now increased withdrawal limit from Rs 1,000 to Rs 10,000.

“Other terms and conditions of the said Directive shall remain unchanged. With the above relaxation, more than 60% of the depositors of the Bank will be able to withdraw their entire account balance,” RBI said in a statement.

“The above relaxation has been granted with a view to reducing the hardship of the depositors. The Reserve Bank is closely monitoring the position and shall continue to take further steps as are necessary to safeguard the interest of the depositors of the bank,” RBI said.

On tuesday, RBi has banned the PMC from carrying out all of its banking transactions for six months. The depositors were allowed to withdraw 1000/- on ly from their accounts. This was trouble for most of the depositors.

Central Bank had found the irregularities in this bank and under reporting of NPAs, which has forced the RBI to put restrain on the activities of this bank.

The RBI also sacked the bank‘s board of directors under sub-sections 1 and 2 of section 36 AAA read with section 56 of the Banking Regulation Act 1949. RBI has also appointed an administrator for the work.

The 35-year-old Bank is a multi-state cooperative bank with operations in Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. With a network of 137 branches, it ranks among the top 10 cooperative banks in the country.