PMC Bank: Relief for customers, RBI increases withdrawal limit to Rs 50,000

New Delhi, Nov 05: The Reserve Bank of India (RBI) on Tuesday increased the withdrawal limit from Rs 40,000 to Rs 50,000, in a relief to the crisis-hit Punjab and Maharashtra Cooperative (PMC) Bank customers.

This comes as a huge relief for thousands of PMC Bank depositors who have been protesting against the regulatory impositions by the Reserve Bank of India.

"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 50,000/- (Rupees Fifty Thousand only), inclusive of Rs 40,000 allowed earlier. With the above relaxation, more than 78% of the depositors of the bank will be able to withdraw their entire account balance," the central bank said in a statement.

The Bombay High Court on Monday sought to know from the Reserve Bank of India what steps it has taken to protect the interests of depositors of the crisis-hit Punjab and Maharashtra Cooperative (PMC) Bank.

On September 23, the RBI imposed regulatory restrictions on the PMC Bank for six months over alleged financial irregularities. The withdrawal limit for account holders was initially Rs 1,000 per each customer for six months, which was later raised to Rs 10,000 and then to Rs 40,000.

The crisis at the bank is attributed to loans made to realty player Housing Development Infrastructure Ltd (HDIL), which were allegedly hidden from regulators' scrutiny, turning non-performing assets.

Five persons, including HDIL promoters and bank's top management, have been arrested.

The Enforcement Directorate too is investigating the case and has attached the assets of HDIL promoters, Rakesh Wadhawan and his son Sarang Wadhawan, who are in its custody.