RBI again hikes cash withdrawal from PMC Bank to Rs 50,000

Agencies
Tuesday, 5 November 2019

"After reviewing the bank's liquidity position and its ability to pay its depositors, it has been decided to further enhance the limit for withdrawal to Rs 50,000, inclusive of Rs 40,000 allowed earlier," RBI said in a statement.

MUMBAI: The Reserve Bank of India on Tuesday enhanced the cash withdrawal from the Punjab & Maharashtra Cooperative (PMC) Bank to Rs 50,000 per account.

This is the fourth RPT increase in withdrawal limit since the scam-hit bank was placed under its direct control with an administrator on September 23. 

Nine depositors till date have lost their lives including a 74-year-old man from Thane on Monday.

The depositors of the bank are allowed to withdraw from the bank's own ATMs within the prescribed limit of Rs 50,000.

"After reviewing the bank's liquidity position and its ability to pay its depositors, it has been decided to further enhance the limit for withdrawal to Rs 50,000, inclusive of Rs 40,000 allowed earlier," RBI said in a statement.

With this, more than 78 per cent of the depositors will now be able to withdraw their entire account balance.

The Reserve Bank said it is closely monitoring and will take further steps accordingly.

The RBI, on September 23, had put out regulatory restriction on the bank after it found out financial irregularities, including hiding and misreporting of loans given to real estate developer HDIL.

The restrictions included barring the bank from lending and accepting fresh deposits.

It also superseded the board and the management of the bank and appointed an ex-RBI official as the administrator. 

Since the crisis, the law enforcement has arrested five people including the chairman and MD of the bank as well as the father-son duo of HDIL, which owe more than 6,500 crore to the bank.

The now-suspended MD Joy Thomas has admitted in a letter to the RBI that over 72 per cent of it's bank's loan book of Rs 8,980 crore is with HDIL, which is under bankruptcy.

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