The limit for withdrawal for the depositors of the Punjab and Maharashtra Co-operative (PMC) Bank has been increased to Rs 10,000 and it might soon be extended to Rs 1 lakh, said suspended Managing director of the bank, Joy Thomas, according to a report in news agency ANI.

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Earlier, providing relief to the customers, the Reserve Bank of India (RBI) on Thursday hiked the withdrawal limit from Rs 1,000 to Rs 10,000 per bank account in the sanction-hit Punjab and Maharashtra Cooperative (PMC) Bank.

The RBI Chief General Manager Yogesh Dayal said that the decision came in the wake of a preliminary assessment by the administrator of the PMC Bank's latest depositor and liquidity profile.

Accordingly, depositors can now withdraw up to Rs 10,000, including the Rs 1,000 permitted earlier, of the total balance in every savings, current, or any other account for the next six months.

With the relaxation, more than 60 per cent of the bank depositors would be able to withdraw their entire account balance.

The RBI said that it had reviewed the position and allowed the relaxation to reduce the hardships of the depositors.

Described as a multi-state cooperative banking entity founded in 1984 from a small room in Mumbai, the PMC Bank has grown to 137 branches in Maharashtra (103), Delhi (6), Karnataka (15), Goa (6), Gujarat (5) and Madhya Pradesh (2).

As per the RBI orders, the PMC Bank is debarred for six months from granting or renewing any loans and advances, making any investments, incurring any liability, including borrowal of funds or accept fresh deposits, etc., without prior written approval from the RBI.

Confusion reigned supreme outside many of the PMC Bank branches in Mumbai, Thane and other cities as depositors -- mostly MSMEs and ordinary families -- made a beeline to get their monies back, but they were not allowed.

As per the PMC Bank's latest annual report, it has deposits of over Rs 11,617 crore and loans/outstandings of Rs 8,383 crore.