RBI Bank increased the withdrawal limit of PMC bank to Rs.50,000 per account

The Reserve Bank of India (RBI) has increased the withdrawal limit for the customers of Punjab and Maharashtra Cooperative (PMC) Bank to Rs.50,000 per account. The Central Bank made its announcement after reviewing the liquidity position of the Bank and the ability of the Bank to pay its depositors. With this relaxation, more than 78% of the depositors of the Bank will be able to withdraw their entire account balance. This is the fifth time RBI has increased the withdrawal limit since the Bank was placed under its direct control with an administrator.

RBI’s ban over PMC Bank:
On 23 September 2019, RBI barred the PMC Bank from carrying out its functions, including granting, renewing, and loans and advances, make any investments, accept fresh deposits, transactions for a period of six months. Generally, RBI monitors banks’ health and issues such kind of directions in case of concerns over the financial health of an institution. The regulator did not mention any specific reasons for its restrictions on PMC Bank. The announcement did not cancel the banking license of the Bank. The restrictions will be in force for six months.

Post a comment

Your email address will not be published. Required fields are marked *