Relief for PMC Bank depositors as RBI raises withdrawal limit to Rs 50,000

PMC Bank protest at Azad maidan in Mumbai (Photo: Kamlesh Pednekar)
In a relief to the aggrieved depositors of Punjab and Maharashtra Cooperative (PMC) Bank, the Reserve Bank of India (RBI) on Tuesday raised the withdrawal limit to Rs 50,000 from Rs 40,000 earlier. This is the fourth revision in withdrawal limit by the RBI since the PMC Bank scam came to the fore. The RBI had first restricted the withdrawal limit to just Rs 1,000.


“It has also been decided to allow the depositors to withdraw from the bank’s own ATMs within the prescribed limit of Rs 50,000. This is expected to ease the process of withdrawals,” the RBI said. The rise in withdrawal limit is inclusive of Rs 40,000 allowed earlier, which means if a depositor has withdrawn Rs 40,000 from his/her account, an additional Rs 10,000 can be withdrawn.


"With the above relaxation, more than 78 per cent of the depositors of the bank will be able to withdraw their entire account balance," the RBI said.


Last month, the RBI had allowed the depositors to withdraw up to Rs 40,000 of the total balance in their account. Prior to that, the withdrawal of deposits was limited up to Rs 25,000.


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