PMC Bank withdrawal limit increased to Rs 25,000 from Rs 10,000
New Delhi, Oct 03: Reserve Bank of India on Thursday enhanced withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd to Rs 25,000 from Rs 10,000 (PMC Bank) account holders.
Curbs on withdrawal were put in place by RBI alongside other restrictions after the RBI found irregularities, including under-reporting of NPAs in PMC Bank.
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.
RBI also said that it is "monitoring the position of the bank and will continue to take necessary steps in the interest of depositors."
Earlier, the RBI had put restrictions on PMC Bank. Cash withdrawals were capped at ₹1,000 per account, spreading panic among depositors. PMC Bank had also been barred from making fresh loans and taking deposits.
The restrictions, were imposed under Section 35A of the Banking Regulation Act, which is aimed at preventing a run on the bank that could end up endangering the stability of the entire financial system because of a contagion effect.
PMC bank is one of the 62 banks registered under Multi-State Co-operative Societies Act, 2002. It comes under the purview of Central Registrar due to involvement of more than one state.
The multi-state cooperative bank has 137 branches, mostly located in Mumbai. There are 1,814 employees as in March.
Earlier in the day, distraught customers of PMC bank filed a joint police complaint against the bank's chairman and directors for alleged misappropriation of funds of the depositors. The customers stated that at least 14 people were involved in the alleged misappropriation of funds. They also sought an explanation from the management.