The Reserve Bank of India (RBI) on Thursday enhanced the withdrawal limit for the depositors of Punjab and Maharashtra Cooperative (PMC) Bank Ltd to Rs 25,000.
It may be recalled that the RBI had permitted the depositors to withdraw up to Rs 10,000 of the total balance in their accounts. Earlier the RBI had capped withdrawal limit at Rs 1,000 but later on increased it to Rs 10,000 per account.
Last month, the RBI restricted the activities of the PMC Bank for six months and asked it to not grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits.
The Central bank has said the directions were necessitated on account of major financial irregularities, failure of the internal control system of the bank and wrong or under-reporting of its exposures under various off-site surveillance reports.
“With the above relaxation, more than 70 per cent of the depositors of the bank will be able to withdraw their entire account balance. The Reserve Bank is monitoring the position of the bank and will continue to take necessary steps in the interest of depositors,” said the RBI press release.
“The Reserve Bank has also decided to appoint a committee of three members in terms of the section to assist the Administrator of Punjab and Maharashtra Cooperative Bank Ltd,” it read.
PMC Bank is a multi-state scheduled urban 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.