• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

PMC Bank account holders? RBI increases withdrawal limit to Rs 10,000

|

Mumbai, Sep 26: The RBI on Thursday increased withdrawal limit from the initial Rs 1,000 to Rs 10,000 per account for Punjab and Maharashtra Cooperative Bank (PMC Bank) account holders. Joy Thomas, Managing Director of PMC Bank has also been suspended.

RBI increases withdrawal limit to Rs 10,000 per account for PMC Bank account holders

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.

Panic amongst account holders after RBI imposes restrictions on PMC Bank

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.

Meanwhile, social media users have also taken to Twitter to voice their concerns and ask why the depositors should pay for the bank's actions.

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more