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PMC Bank Crisis: Amid Protests, RBI Raises Withdrawal Limit To Rs 10,000 Per Customer

New Delhi, News Nation Bureau | Updated : 26 September 2019, 05:44 PM
Punjab and Maharashtra Co-operative Bank (File Photo)
Punjab and Maharashtra Co-operative Bank (File Photo)

Account holders in Punjab and Maharashtra Co-operative Bank (PMC) can finally breathe a sigh of relief as the Reserve Bank of India (RBI) on Thursday increased the withdrawal limit to Rs 10,000 from Rs 1,000 per customer for the next six months. A wave of panic and grief struck pockets of megapolis after  the central bank on Tuesday placed the urban co-operative bank under a slew of operational restrictions, citing irregularities, including under-reporting of higher NPAs.

"On a preliminary assessment of Punjab and Maharashtra Cooperative Bank Ltd (Mumbai), RBI has decided to allow the depositors to withdraw a sum not exceeding Rs 10,000 of the total balance held in every savings bank account or current account or any other deposit account," RBI said in a statement.

One of the major restrictions, stipulated by the RBI, affecting customers was capping withdrawals at Rs 1,000 per customer during the next six-month period. The curbs included ATM transactions and online banking.

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With customers of various PMC branches staging protests over the RBI mandate across India, the central bank, however, has reviewed its September 23 directions, allowing account holders to withdraw a sum of Rs 10,000 of the total balance.

"On a preliminary assessment of the bank’s latest depositor and liquidity profile as furnished by the Administrator, RBI has decided, in the interest of depositors, to review the Directions," the central bank stated.

RBI said the relaxation has been granted with a view to reducing the hardship of the depositors, adding that it 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.

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"Accordingly, vide modified Directive dated September 26, 2019, it has been decided to allow the depositors to withdraw a sum not exceeding Rs 10,000/- (including Rs 1,000/- wherever already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directive dated September 23, 2019," the statement read.

The above relation will allow more than 60 per cent of the depositors of the co-operative Bank to withdraw their entire account balance. However, other terms and conditions of the said Directive shall remain unchanged.

First Published: Thursday, September 26, 2019 03:59 PM
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