The Reserve Bank of India (RBI) has again increased the withdrawal limit for depositors of Punjab and Maharashtra Cooperative (PMC) Bank to ₹40,000 from the ₹25,000 limit set earlier, while a forensic audit has been ordered on transactions that are under suspicion.
The Reserve Bank of India (RBI) has again increased the withdrawal limit for depositors of Punjab and Maharashtra Bank to ₹40,000 from the ₹25,000 limit set earlier, while a forensic audit has been ordered on transactions that are under suspicion.
Finance Minister Nirmala Sitharaman had said on Saturday that RBI governor Shaktikanta Das has assured her that resolving PMC depositors’ woes would be the central bank’s top priority. The minister had met aggrieved PMC bank customers during her visit to the city last Thursday.
With this increase in withdrawal limit, 77% of the bank’s customers will be able to withdraw their entire amount, RBI said. The decision was taken after reviewing the bank’s liquidity position.
The banking regulator said PMC Bank’s financial position has been substantially impaired due to the 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,” it said.
RBI has superseded the PMC Bank board and appointed an administrator and a three-member advisory committee. “Further, forensic auditors have been appointed by the bank’s administrator to look into related transactions,” RBI said.
RBI imposed several restrictions on PMC Bank, including a ₹1,000 cap on deposit withdrawal after the close of business hours of September 23. On September 26, the deposit withdrawal limit was increased to ₹10,000 and to ₹25,000 on October 3.
“The Reserve Bank is closely monitoring the developments and will continue to take the necessary steps in the interest of the bank’s depositors,” the central bank said.
The banking regulator also said that based on a complaint the bank filed 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, Maharashtra Police has started its investigations into the matter.
“The administrator and the three-member advisory committee appointed by the RBI are working for speedier resolution of the various issues being faced by the bank in conducting its operations,” RBI said.
The banking regulator said PMC Bank’s financial position has been substantially impaired due to the 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,” it said.
RBI has superseded the PMC Bank board and appointed an administrator and a three-member advisory committee. “Further, forensic auditors have been appointed by the bank’s administrator to look into related transactions,” RBI said.
RBI imposed several restrictions on PMC Bank, including a ₹1,000 cap on deposit withdrawal after the close of business hours of September 23. On September 26, the deposit withdrawal limit was increased to ₹10,000 and to ₹25,000 on October 3.
“The Reserve Bank is closely monitoring the developments and will continue to take the necessary steps in the interest of the bank’s depositors,” the central bank said. The banking regulator also said that based on a complaint the bank filed 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, Maharashtra Police has started its investigations into the matter.
“The administrator and the three-member advisory committee appointed by the RBI are working for speedier resolution of the various issues being faced by the bank in conducting its operations,” RBI said.
Published - October 15, 2019 01:44 am IST
