PMC Bank Crisis: Withdrawal limit increased to Rs 40,000

RBI has increased the withdrawal limit for the PMC bank customers

PMC Bank Crisis: Withdrawal limit increased to Rs 40,000

There is good news for the customers of Punjab and Maharashtra Cooperative (PMC) Bank as Reserve Bank of India on October 14 announced that they will be relaxing the withdrawal limit to Rs 40,000. According to RBI, this move will enable 77 per cent of the bank's customers to withdraw their entire account balance.

RBI has taken this decision after reviewing the bank's liquidity position and its ability to pay back its depositors.

The crisis in PMC bank was first exposed on September 23, when RBI directed it to shut down its operations. In addition, a withdrawal limit of ₹1000 per customer which has been imposed. This was relaxed to Rs 25,000 on October 3.

According to reports, the major cause of this crisis is the exposure that the bank had to bankrupt Housing Development and Infrastructure Limited (HDIL).

The account holders in the bank have been protesting from the time the fraud has come to light. A 51-year-old man, whose family has a deposit of over Rs 90 lakh in PMC Bank, has died due to a heart attack.