PMC Bank Crisis: RBI Increases Withdrawal Limit to Rs 25,000
On September 26, the withdrawal limit for customers was raised to Rs 10,000. However, other restrictions imposed on the PMC Bank were sustained. The latest increse in withdrawal amount comes as a huge relief for the customers of PMC Bank.
Mumbai, October 3: The Reserve Bank of India on Thursday enhanced the withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd- PMC Bank to Rs 25,000. However, customers can withdraw the Rs 25,000 amount limit during the period of six months. After the PMC Bank crisis, the central bank had also allowed depositors to withdraw only Rs 1,000 from their accounts, triggering panic among depositors. The action was taken after the central bank found certain irregularities in the bank, including under-reporting of NPAs and had put restrictions on fresh lending. PMC Bank Board Superseded by RBI, Toll-Free Number Released For Customers' Grievances.
On September 26, the withdrawal limit for customers was raised to Rs 10,000. However, other restrictions imposed on the PMC Bank were sustained. The latest increse in withdrawal amount comes as a huge relief for the customers of PMC Bank. After PMC Bank Crisis, Lakshmi Vilas Bank Lands in Soup; Normal Transactions at Branches to Remain Unaffected.
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The PMC Bank has been barred from granting or renewing loans and advances, making any investments, incurring any liability, including borrowal of funds or accepting fresh deposits, among others, without the prior written approval from RBI. Founded in 1984, the PMC Bank has branches in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.
Mumbai police on Thursday arrested two directors of the Housing Development Infrastructure Limited (HDIL) in the Punjab and Maharashtra Cooperative (PMC) Bank scam and also seized Rs 3,500 crore property of the company, a senior official said. A Special Investigation Team of the Economic Offences Wing (EOW) arrested Rakesh Wadhawan, chairman and managing director of HDIL and his son Sarang Wadhawan for loan default, the official said.
(The above story first appeared on LatestLY on Oct 03, 2019 09:04 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).