Providing further relief to harried customers of crisis-hit Punjab and Maharashtra Co-operative (PMC) Bank, the Reserve Bank of India on Monday increased the cash withdrawal limit to Rs 40,000 per account from Rs 25,000 earlier.”The Reserve Bank, after reviewing the bank’s liquidity position and its ability to pay its depositors has decided to further enhance the limit for withdrawal to Rs 40,000, inclusive of Rs 25,000 allowed earlier. With the above relaxation, about 77 per cent of the depositors of the bank will be able to withdraw their entire account balance,” the RBI said. While slapping restrictions on the bank for six months on September 23, the RBI had allowed withdrawal of only Rs 1,000 for the bank’s depositors, creating panic among them. However, on September 26, following a spate of complaints from depositors, the RBI relaxed the curbs and allowed depositors to withdraw a sum not exceeding Rs 10,000 (including the Rs 1,000 already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account. This was further raised to Rs 25,000 on October 3. “The financial position of the bank has been substantially impaired due to fraud perpetrated on it by certain persons,” it said. “The Reserve Bank is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank,” the RBI said. “Forensic auditors have been appointed by the Administrator of the bank to look into the related transactions. The Administrator and the 3-member Advisory Committee appointed by the RBI are working for speedier resolution of the various issues being faced by the bank in conducting its operations,” it said. On September 23, the RBI superseded the board of the bank and appointed JB Bhoria as administrator of PMC Bank to take appropriate measures to bring the bank back on the rails. PMC Bank, which has a deposit base of Rs 11,617 crore, has 137 branches spread spread across seven states.
