Money & Banking

RBI enhances withdrawal limit for PMC customers to ₹40,000

Mumbai | Updated on October 14, 2019 Published on October 14, 2019

Providing further relief to the distressed depositors of the crisis hit PMC Bank, the Reserve Bank of India, on Monday, enhanced the limit of withdrawal to ₹40,000 of the total balance in their accounts from ₹25,000.

With this relaxation, about 77 per cent of the depositors of the bank will be able to withdraw their entire account balance, the RBI said in a statement. The RBI had placed the Mumbai-based bank under directions for six months with effect from the close of its business on September 23 on account of 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.

Initially, PMC Bank’s depositors were allowed to withdraw only up to ₹1,000 of the total balance in their accounts. On September 26, this limit was increased to ₹10,000, and on October 3, this was further upped to ₹25,000.

The RBI said the financial position of the bank has been substantially impaired due to fraud perpetrated on it by certain persons. The central bank emphasised that as soon as the matter came to its notice, action was taken in appointing an administrator and ensuring that the bank’s available resources are protected and not misused or diverted.

“Meanwhile, based on a complaint filed by the bank against its officials and borrowers associated with the fraud/financial irregularities in the bank and manipulation of its books of accounts, the Economic Offences Wing of Maharashtra police has started its investigations into the matter.

“Further, forensic auditors have been appointed by the administrator of the bank to look into the related transactions,” the RBI said in a statement.

The central bank said the administrator and the three-member advisory committee appointed by the RBI are working for speedier resolution of the various issues being faced by the bank in conducting its operations.

The RBI added that is closely monitoring the developments and that it would continue to take necessary steps in the interest of the depositors of the bank.

Published on October 14, 2019
This article is closed for comments.
Please Email the Editor