New Delhi, September 26: Three days after imposing crippling restrictions on the operation of the Punjab and Maharashtra Co-operative (PMC) Bank, the Reserve Bank of India (RBI) has decided to increase the limit on cash withdrawals. According to reports citing top sources, the cap on withdrawals has been raised to Rs 10,000 per account. As per the RBI circular issued on September 23, the account holders were barred from withdrawing more than Rs 1,000 for the next six months.

Top sources, while speaking to CNBC TV-18, claimed that the withdrawal limit has been increased by the Reserve Bank. An official announcement from the central bank, along with the PMC Bank, was awaited by the time this report was published. PMC Bank Crisis Explained: Here's Why Customers Are Panicking And Why RBI Has Imposed Restrictions.

Curb on Withdrawals Relaxed: Reports

Thousands of PMC Bank customers were left in the lurch after the RBI issued the shock order on Tuesday, announcing that the bank's operation have been freezed in effect from September 23.

Apart from the limit on cash withdrawals, the PMC Bank was barred from granting or renewing loans, make investments, accepting fresh deposits or discharging any payments under its liabilities.

PMC Bank had issued a statement two days ago, appealing its customers to exercise restraint and calm. The lender's MD Joy Thomas said the move was necessited after the RBI found "irregularities". Within the six-month period, the issue would be resolved and the bank would function as per normal, he claimed.

"I know it is a difficult time for all of you and any apology may not restore the pain you are undergoing," Thomas said. "The bank will be open for the customers as per its regular working hours. We assure you that your money is in safe hands," he added.

(The above story first appeared on LatestLY on Sep 26, 2019 03:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).