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RBI doubles withdrawal limit for PMC depositors, but their troubles are far from over


RBI doubles withdrawal limit for PMC depositors, but their troubles are far from over
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On June 20, Reserve Bank of India (RBI) announced a new withdrawal limit for PMC bank holders. As per the new directive now every bank holder will be able to 1 lakh from their accounts. Earlier this was fixed at Rs 50,000 and there was another provision to withdraw an additional Rs 50,000 in case of a medical emergency. Furthermore, the restrictions that were imposed on the bank last year have been extended for another six months and will now end on December 22, 2020.

While announcing these changes, RBI had shared via a media statement,  “With the above relaxation, more than 84 per cent of the depositors of the bank will be able to withdraw their entire account balance.”

In the time when the world is trying to deal with the coronavirus outbreak, PMC bank holders are trying to not just trying to deal with the pandemic but also trying to recover their hard-earned money from the bank.

To protest against this new rule they had staged a protest on June 23 outside the RBI house. While the protestors claim that they had followed all social distancing norms, yet they were detained by the police.

During their protest, they talked about the hardships that they have to face in this pandemic. They even questioned why RBI had a different approach for the Yes Bank and the same was not given to this bank. Today on June 26, the same question was also raised by Delhi High Court to the Centre and the RBI.

RBI had found banking irregularities at the PMC bank in September 2019 following which they had put restrictions on the withdrawal limits. The last time the withdrawal limit was increased for PMC bank depositors was on November 5, 2019. At that time, RBI had increased the limit from 40,000 to 50,000. RBI had

Over the period of time, it was revealed how the cooperative bank had been hiding and misreporting of loan. It had also extended large loans to the real estate developer HDIL, following which the promoters of the group were taken in police custody along with the bank’s auditors and their Chairman S Waryam Singh.

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