RBI hikes withdrawal limit from ₹1,000 to ₹10,000 for PMC bank customers

PMC customers withdrawal limit hiked, RBI, ₹10,000, Punjab & Maharashtra Cooperative Bank, crisis
India announced Rs 21 trillion ($282 billion) worth of measures to support the economy through the virus crisis. File Photo. PTI

In a relief to the harried customers of crisis-hit Punjab & Maharashtra Cooperative Bank (PMCB), the Reserve Bank of India on Thursday (September 26) increased the cash withdrawal limit to ₹10,000 per account.

This will help over 60 percent customers of the crippled PMCB.

The RBI on Tuesday (September 24) had imposed a slew of restrictions on the bank for six months, allowing withdrawal of only ₹1,000 for the bank’s depositors, leaving the customers, who are typically not from the well-heeled, a worried lot.

Also read: PMC says it has enough liquidity, depositors money fully safe

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The move came after the central bank has found certain irregularities in the bank, including under-reporting of non-performing assets (NPAs) and had put restrictions on fresh lending. “It has been decided to allow depositors to withdraw a sum not exceeding ₹10,000 (including the ₹1,000 already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account,” RBI said in a release.

The regulator said, the higher limit is subject to the fact that the customer does not have any liability with the bank by way of loans of surety for a third-party loan. With the above relaxation, more than 60 percent of the depositors of the bank will be able to withdraw their entire account balance.

RBI said that the above relaxation has been granted with a view to reduce the hardship of depositors.

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