PMC Bank crisis: RBI increases cash withdrawal limit to Rs 25,000

PMC Bank crisis: RBI increases cash withdrawal limit to Rs 25,000

The Reserve Bank of India (RBI) has further relaxed the cash withdrawal limit for the depositors of Punjab and Maharashtra Cooperative (PMC) Bank to Rs 25,000.

The banking regulator has also appointed a three-member committee to assist the Administrator overseeing the troubled bank, which was put under RBI directions for discrepancies in reporting of bad loans and breaching group exposure limits.

“The RBI again reviewed the bank’s liquidity position and, with a view to reducing the hardship of the depositors, has decided to further enhance the limit for withdrawal to Rs 25,000,” the regulator said.

With the above relaxation, RBI said that more than 70 percent of the depositors will be able to withdraw their entire amount balance.

“The Reserve Bank is monitoring the position of the bank and will continue to take necessary steps in the interest of depositors,” RBI said.

The lender is currently under inspection by RBI. Also, the Economic Offence Wing of Mumbai Police registered a complaint against the top brass of PMC Bank and real estate company Housing Development and Infrastructure Ltd. (HDIL) for fraudulent activities that led to a loss of Rs 4355 crore for the bank.

The Reserve Bank of India (RBI) had increased the withdrawal limit for customers of Punjab and Maharashtra Cooperative Bank (PMC Bank) to Rs 10,000 from Rs 1,000 earlier on September 26.

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