PMC Bank: RBI Enhances Withdrawal Limit Rs40,000 from Rs25,000
Moneylife Digital Team 14 October 2019
The Reserve Bank of India (RBI) on Monday enhanced withdrawal limit to Rs40,000 from Rs25000 for depositors, of Punjab and Maharashtra Cooperative Bank Ltd (PMC Bank).
"...after reviewing the PMC Bank’s liquidity position and its ability to pay its depositors has decided to further enhance the limit for withdrawal to Rs40,000, inclusive of Rs25,000 allowed earlier. With the above relaxation, about 77% of the depositors of the bank will be able to withdraw their entire account balance," RBI said in a statement.
Earlier this month, RBI had raised the withdrawal limit to Rs25,000 from Rs10,000 while appointing a three-member committee to assist the administrator of PMC Bank.
Meanwhile, based on a complaint filed by the bank against its officials and borrowers associated with the fraud and financial irregularities in the Bank and manipulation of its books of accounts, the Economic Offences Wing (EOW) of Maharashtra Police has started its investigations into the matter. 
"Further, forensic auditors have been appointed by the administrator of the PMC 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 Reserve Bank said.
Rakesh Modi
4 years ago
Why no media or people are shouting for Kapol bank which is closed by RBI since 3 years..., just bcos it is a small bank?? Or no director of that bank is politician??
shivaprasad chhatre
4 years ago
I wish to share a few facts in connection with DICGC
How to get maximum Deposit Insurance (DICGC) Cover from deposits with a single bank Or How one may enhance DICGC cover for existing deposits over Rs.1 lac with ‘the Bank’
If a set of family members wish to keep money in smaller banks (including licensed but non-scheduled cooperative bank and Scheduled Cooperative Bank), licensed small finance banks (including one yet to receive scheduled status) for a higher rate of interest yet wished it to be secured / safe, such people may consider following.
Using legitimate trick below you may invest in weak PSU bank or in a co-op bank " or "Small Finance Bank" that may be offering higher interest returns. I have purposefully not mentioned the name of payment banks as currently one cannot invest more than 1 lac in ‘CASA’ deposit with such banks and one cannot deposit money with them in Fixed Deposit.
Please peruse page 8-9 (official reply of DICGC with an example, to a query No: 11) from DICGC booklet (extract given below). Only a few depositors (even members from bankers community) know this aspect.
Q 11: What is the meaning of ‘deposits held in the same capacity and same right’; and ‘deposits held in a different capacity and different right’?

If an individual opens more than one deposit account in one or more branches of a bank, e.g. Shri S.K. Pandit opens one or more savings/current account and one or more fixed/ recurring deposit accounts etc., all these are considered as accounts held in the same capacity and the same right. Therefore, the balances in all these accounts are aggregated and the maximum insurance cover is available up to rupees one lakh.

If Shri S.K. Pandit holds other deposit accounts in his capacity as a partner of a firm or guardian of a minor or director of a company or trustee of a trust or a joint account, say with his wife Smt. S. K. Pandit, in one or more branches of the bank then such accounts are considered as held in a different capacity and different right. Accordingly, such deposits accounts will also enjoy the insurance cover up to rupees one lakh separately.

It is further clarified that the deposit held in the name of the proprietary concern where a depositor is a sole proprietor and the deposit held in his capacity are aggregated and insurance cover is available up to rupees one lakh in maximum.

However, if individuals open more than one joint accounts in which their names are not in the same order, for example, A, B and C; C, B and A; C, A and B; A, C and B; or group of persons are different say A, B and C and A, B and D etc. then, the deposits held in these joint accounts are considered as held in the different capacity and different right. Accordingly, insurance cover will be available separately up to rupees one lakh to every such joint account where the names appear in different order or names are different


All such money will be insured with DICGC (100% subsidiary of RBI) if you deposits of money based on the reply to the FAQ: 11 (above) in mind.

To elaborate further:

Say, a senior citizen (‘A’) has the following deposits in the name of self and his family two other members :

‘A’ singly (Rs) 100000,
A &B jointly (Rs) 100000,
A&B&C jointly (Rs) 100000,
A&C&B jointly (Rs) 100000.

In this case A’s deposit (single) as well as 3 deposits of ‘A’ jointly with others (he being the first depositor) each Rs.10000, will entitle a senior citizen rate of interest, Also all deposits held in the names of A+ A&B, A&B&C, A&C&B will be treated as deposits held in different capacity and different right (and DICGC cover of Rs 100000 will be available to each of the above combinations). Thus a person will get DICGC cover for Rs.4 lacs and sr citizen interest rate

Further, if there are many deposits placed with the same bank between A, B and C (combinations of some or all such persons, even if such deposits are held in different/reverse order also) will be treated as deposits held in different capacity and different right and will qualify for separate DICGC cover of Rs 1 lac each, per such combination.
There will be genuine doubt: How one could apply this to existing depositors with any bank.
One can be sure that till the time there are directions from RBI (like in case of PMC bank) or while the bank is under PCA one can legitimately apply to the bank to ‘add’ name of another depositor as a joint depositor. e.g ‘A’ has two deposits say Rs 1 lac and Rs 1.5 lacs respectively.
While ‘A’ may continue to hold any of the deposits (in this case) on his single name, may advise the bank to add the name of ‘B’ as 2nd joint depositor and also make it payable to ‘former or survivor’.

Thus the Interest /Tax status of the deposit will not undergo a change but the 2nd deposit that was hitherto not covered for DICGC will qualify for DICGC cover-up to limit of Rs 1 lac (separate from A as sole holder), due to application of rule deposits held in a different capacity and different right’. This cannot be challenged denied as it fits in DICGC norm and perfect as per deposit policy of each bank which is based on model deposit policy of IBA. It is also consistent with RBI’s manual on deposits and old RBI’s master circulars on deposits.
Replied to shivaprasad chhatre comment 4 years ago
That\'s why in India people simply invest in land and gold. Financial instruments comes with heavy maintenance.
nikhil keny
4 years ago
Can i break my FD n RD
Rakesh Modi
Replied to nikhil keny comment 4 years ago
yes you can but they will release only 40k, rest wil be again made a fresh FD of balance amount with current ROI.
Monika Bhatia
4 years ago
So many plea to govt were made by diff sections as appended below
What is the resolution???? First 2 weeks nobody spoke about it.
Why not RBI recapitalises the bank?
Monika Bhatia
4 years ago
@PMOIndia @nsitharaman @ianuragthakur @RBI Dear Prime Minister Modi ji,‬

‪Thanks for taking the Indian growth story to the International community during your recent trip to US. While you were away an incident had occurred which needs your attention. Yesterday Punjab and Maharashtra Co-op bank (PMC bank) has been put under 35A restrictions by RBI. Now PMC bank depositors are allowed to withdraw only ₹1000 in next 6 months. This has seriously impacted 51000 account holders and their families. Several Senior Citizens have all their lifetime savings that they are unable to access when they actually need those to meet their daily needs including day to day medical expenses. This needs your immediate attention so that people who have honestly paid there taxes throughout their life do not die in hopeless misery. As first step to this resolution 100% of Senior Citizen depositors money be made available to them immediately. Writing this to you with hope to seek your help for the Senior Citizens of our country who have been the torch bearers of Indian growth and culture for their entire lives. Thanking you in anticipation.‬
‪Jai Hind
#pmcbank #seniorcitizensneedhelp #HowdyModi
Replied to Monika Bhatia comment 4 years ago
Can I ask you one thing? Why did you maintain account with Co-operative Banks when there are several big Banks around like SBI or HDFC? What is that Co-operative Banks give that SBI cannot?
Rakesh Modi
Replied to Newme comment 4 years ago
we didnt thought that RBI will do hands up in case if something happens to bank, IN RBI's website also these banks are mentioned under regulated by them..., Also after this fiasco, wats the guarantee that Nationalized banks can also become insolvent & same RBI will do handsup??
Monika Bhatia
4 years ago
Plea from most vulnerable section in human community #Senior Citizens #PMC bank case

Lets join hands and plea the Government ;trustfully voted Modi Sarkar; RBI official aka trustful body to safegaurd customers interest; PMC bank aka trusted insitution to safegaurd their living needs and medical emergencies of more than 50 years of hardearned savings.Their money made look the banks richer and healthier ( rated as Top 5 cooperative banks of India) and so the economy.

The broken spines and dried eyes are now withunstoppable tears and going through an agony which needs to be mended ASAP pleading joining hands for their own money own savings for their daily living, medical routine; deferred dreams for today and meet huge medical emergencies they foresee.Perhaps dreams of 4 decades saving on a beautiful trip in their old age.To spend their money with pride today.They deserve yes they well deserve it all!

Biggest shock for Senior Citizens!
Like every zone every facet on special treatment to senior citizens-6 months period of restriction please waive for this most deserving weaker and vulnerable section of the society.Process 100% of their monies in form of savings or deposits etc to them respectfully.

They have contributed for more than 5 decades to the society ; paid taxes; declared their incomes.Their need is urgent and humongous.

Modiji / RBI / India : Can we wipe tears from their eyes staring with hope; shivering hands ; knowing no one to plead to; broken spine ; shaky walk ....lets help them to stand back !!!!

They immediately need it all.their life their savings their Life Support.Don't let them break or die with pain they have already seen and suffered many...

Let's make the plead Viral and share it on minimum 5 whatsapp group or as many as you can.All your social media handles.And make reach their plea for section who cant speak for themselves.But they did maximum for the economy.They are the most loyal vote banks.Maximum years of tax paying.Maximum years of contribution to economy.

On behalf of Senior Citizens:(

All of equally affected but lifesaving support is immediate need of this section.Let them proudly say again "Har baar Modi Sarkaar"
Monika Bhatia
4 years ago
Resolve then reform
#senior citizens pmc victims pleaded for justice
Monika Bhatia
4 years ago
#pmc victims need full fledged action
#100% money return atleast to the most vulnerable section of society #senior citizens plea with broken spine unstoppable tears ....puri zindagi ki savings.they were the loyal vote banks honest tax payers too
Monika Bhatia
4 years ago
Nautanki b4 elections ....recapitalise the bank we want our entire savings
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