RBI doubles withdrawal limit for PMC depositors

Reserve Bank of India (RBI) has doubled the withdrawal limit for depositors of Punjab & Maharashtra Co-operative Bank (PMC) to Rs 1 lakh from Rs 50,000, it said in a press release.

With this relaxation 84% of the bank’s depositors will be able to withdraw their entire account balance up from 78% earlier.

“Further, on a review of the bank’s liquidity position, its ability to pay the depositors and with a view to mitigating the difficulties of the depositors during the prevailing COVID-19 situation, it has also been decided to further enhance the limit for withdrawal to Rs 1,00,000 per depositor, inclusive of Rs 50,000 allowed earlier,” the RBI added.

The bank has been placed under RBI restrictions since September last year and its withdrawal limit was last raised in November.

On Friday, RBI also extended the directions on the bank for a further period of six months from June 23, 2020 to December 22, 2020 subject to review.

The RBI stated that they have been in continued talks with all the stakeholders involved and pointed out that owing to the extent of the negative net worth of the bank, and the need to recover bad loans, the resolution of the bank will take further deliberation.