Giving further relief to customers of crisis-hit Punjab & Maharashtra Cooperative Bank, the Reserve Bank of India on Thursday increased the cash withdrawal limit to Rs 25,000 per account from Rs 10,000 earlier.
“The Reserve Bank again reviewed the bank’s liquidity position and, with a view to reducing the hardship of the depositors, has decided to further enhance the limit for withdrawal to Rs 25,000,” the RBI said in a statement. With the latest relaxation, more than 70 per cent of the depositors of the bank will be able to withdraw their entire account balance. “The RBI is monitoring the position of the bank and will continue to take necessary steps in the interest of depositors,” it said.
The RBI has also decided to appoint a Committee of three Members to assist the Administrator of PMC Bank. Several customers and housing societies had complained to the RBI about the restrictions on withdrawals of funds.
While slapping restrictions on the bank for six months on September 24, the RBI had allowed withdrawal of only Rs 1,000 for the bank’s depositors, leaving the customers, creating panic among the depositors. 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RBI relaxed the curbs and allowed depositors to withdraw a sum not exceeding Rs 10,000 (including the Rs 1,000 already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account.
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