The RBI has also allowed PMC Bank account holders to withdraw money from the bank’s own ATMs within the prescribed limit of Rs 50,000.
Some relief to the PMC bank holders as today The Reserve Bank of India (RBI) raised the withdrawal limit for account holders up to Rs. 50,000. In a press release “The Reserve Bank of India said they have extended the withdrawal limit up to 50,000 earlier from 40,000. After reviewing the bank’s liquidity position and its ability to pay its depositors RBI came to this conclusion.
“With the above relaxation, more than 78 per cent of the depositors of the bank will be able to withdraw their entire account balance,” the RBI said.
The RBI has also allowed PMC Bank account holders to withdraw money from the bank’s own ATMs within the prescribed limit of Rs. 50,000. “This is expected to ease the process of withdrawals,” RBI said.
This development came after the constant push of PMC bank holder seeks their money. The Forth time RBI has extended their withdrawal limit.
Last month, the Reserve Bank of India raised the withdrawal limit for PMC Bank depositors to Rs. 40,000.
RBI had imposed restrictions on PMC Bank in September considering the “major financial irregularities, failure of internal control and systems of the bank and wrong/under-reporting of its exposures under various Off-site Surveillance reports”. RBI decided to put a restriction on PMC Bank for any other future functioning. PMC Bank needs prior approval of RBI to be in any operations i.e Investment and granting loans.
The bank, over a long period of time, had given over Rs. 6,500 crores in loans to HDIL, which is 73 per cent of its total advances, and which has turned sour with a shift in the fortunes of the now-bankrupt company.
Its total loans stood at Rs. 8,880 crore and the deposits at over Rs. 11,610 crores. There have been massive protests across the city from the depositors following the RBI action.