PMC Bank: Customers Can Withdraw Rs10,000 Instead of Rs1,000 as per RBI

Moneylife Digital Team 26 September 2019

Investor Interest

After facing a backlash from disgruntled customers and social media, the Reserve Bank of India (RBI) on Thursday increased the withdrawal limit to Rs10,000 from Rs1,000 for customers of Punjab and Maharashtra Cooperative (PMC) Bank.

In a notification, RBI says, "it has been decided to allow the depositors to withdraw a sum not exceeding Rs10,000, including Rs1,000 wherever already withdrawn, of the total balance held in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI directive dated 23 September 2019. Other terms and conditions of the said Directive shall remain unchanged. With the above relaxation, more than 60% of the depositors of the bank will be able to withdraw their entire account balance."

"The above relaxation has been granted with a view to reducing the hardship of the depositors. The Reserve Bank is closely monitoring the position and shall continue to take further steps as are necessary to safeguard the interest of the depositors of the bank," RBI added.

On 24th September, the central bank had put strict restrictions on the Mumbai-based lender. While barring PMC Bank from carrying out a majority of its routine business transactions for six months, RBI has allowed depositors to withdraw only Rs1,000 from their accounts.

According to RBI, the directives were necessitated due to major financial irregularities, failure of internal control systems of the Bank and wrong and under-reporting of its exposures under various off-site surveillance reports that came to the central bank’s notice recently.

PMC Bank is one of the top 10 cooperative banks in India and offers 360 days of banking, including on Sundays and holidays.

Comments

User

Dr.Dhananjaya Bhupathi

5 years ago

"major financial irregularities, failure of internal control systems of the Bank?"
A. 1. When RBI asserts its authority, why so much of Hallah Gullah?
2. But, Rs.2500 crore canâ€™t be released overnight. It takes months & years.
3. What is the role of the Bankâ€™s board, its CMD/CEO/ED/GMs? Concurrent /Statutory Auditor[s], RBI inspections?
4. Such mishaps could be prevented right from the beginning.
5. The Finance Ministry [as & when Duds of Adhocism/aphorism/prejudice are replaced by visionaries available aplenty]and or RBI is expected to issue broad guidelines; since depositorsâ€™ hard-earned money are involved.
6. In these modern days, nobody tolerates â€˜Big/Small Hair cut/Tonsureâ€ by any Bank be it PSB/Private/co-op. bank.
7. SATYAMAEVA JAYATHE!!!