The Reserve Bank of India (RBI) on Monday, 14 October, raised the withdrawal limit for depositors of Punjab and Maharashtra Co-operative Bank Ltd to Rs 40,000 from the previous limit of Rs 25,000.
The Rs 25,000 limit was increased from an initial limit of Rs 10,000 on 3 October.
“It may be recalled that the Reserve Bank of India on 3 October 2019 had permitted the depositors of Punjab and Maharashtra Co-operative Bank Ltd to withdraw up to Rs 25,000 of the total balance in their accounts,” RBI’s official release said.
“The Reserve Bank of India, after reviewing the bank’s liquidity position and its ability to pay its depositors, has decided to further enhance the limit for withdrawal to Rs 40,000, inclusive of Rs 25,000 allowed earlier.”
According to its statement, this will enable about 77 percent of the depositors to withdraw their entire account balance.
Curbs on withdrawal were put in place by the RBI alongside other restrictions after the central bank found irregularities, including under-reporting of NPAs in PMC Bank.
“The financial position of the bank has been substantially impaired due to 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,” the statement read.
Initially, the limit was pegged at Rs 1,000 per account over a period of six months, which was later revised to Rs 10,000 on 26 September.
The bank said that it is closely monitoring and shall “continue to necessary steps in the interest of the depositors of the bank.”
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