PMC Bank scam: RBI allows depositors to withdraw up to Rs 40,000

In a relief to Punjab and Maharashtra Cooperative (PMC) Bank account holders, the Reserve Bank of India (RBI) on Monday, increased the withdrawal limit for the bank customers to Rs 40,000 which is inclusive of the Rs 25,000 allowed earlier. In an official statement issued, the RBI said that after reviewing the bank's liquidity position, it had decided to enhance the withdrawal limit. Amidst protests earlier, on October 3, the RBI had allowed the depositors to withdraw up to Rs 25,000. 

"77% of depositors able to withdraw entire balance," says RBI

The official statement issued by RBI read, "The Reserve Bank of India, after reviewing the bank’s liquidity position and its ability to pay its depositors has decided to further enhance the limit for withdrawal to ₹ 40,000/- (Rupees Forty Thousand only), inclusive of ₹ 25,000 allowed earlier. With the above relaxation, about 77% of the depositors of the bank will be able to withdraw their entire account balance."

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The statement also said that the Economic Offences Wing (EOW) of the Maharashtra Police has started its investigations in the PMC scam case based on a complaint filed by the bank against its officials and borrowers on the grounds of fraud and financial irregularities in the bank and manipulation of its books of accounts. The central bank stated that as soon as it was informed about the crisis, it took necessary steps to ensure that the bank's available resources are protected and not misused further.  “Further, forensic auditors have been appointed by the administrator of the bank to look into the related transactions. The administrator and the three-member advisory committee appointed by the RBI in terms of Section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act, 1949 are working for speedier resolution of the various issues being faced by the bank in conducting its operations," the statement issued on Monday read.

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The RBI had initially limited the withdrawal amount to Rs 1,000 per account which was increased to Rs 10,000 in two days and then increased to Rs 25,000 on October 3. The central bank's action came after it found certain irregularities in the bank, including under-reporting of non-performing assets (NPAs) and large deposit withdrawals. 

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