The Reserve Bank of India (RBI) on Thursday increased the deposit withdrawal limit from Punjab and Maharashtra Cooperative (PMC) Bank to ₹25,000 from the ₹10,000 mandated earlier. With this, 70% of depositors will be able to withdraw their entire balance, RBI said in a statement.
“The Reserve Bank of India again reviewed the bank’s liquidity position, and with a view to reducing the hardship of depositors, has decided to further enhance the limit for withdrawal to ₹25000,” the banking regular said.
When restrictions were imposed on the bank last week, deposit withdrawals were capped at ₹1,000, which was increased to ₹10,000 two days later. The RBI said it is monitoring the bank’s position and will take necessary steps in depositors’ interest.
It has also appointed a three-member committee to assist the administrator of PMC Bank.
Last week, the banking regulator imposed various restrictions on the Mumbai-based cooperative bank such as a cap on deposit withdrawal, curbing lending operations to protect depositors’ interest, superseded the board and appointed an administrator. The restrictions were imposed due to ‘major financial irregularities’, the central bank had said.
