Reserve Bank of India on Monday enhanced the withdrawal limit for depositors of Punjab and Maharashtra Cooperative (PMC) Bank Ltd to ₹ 40,000, giving relief to its customers ahead of Diwali.
It is the third such rise this month. The RBI had barred the PMC Bank customers with the initial withdrawal limit of ₹ 1,000. This was subsequently raised 10,000 and Rs 25,000 after protests.
The increase comes after Finance Minister Nirmala Sitharaman met RBI Governor Shaktikanth Das on Sunday.
RBI has been reviewing the bank’s liquidity position and has eased the restriction "with a view to reducing the hardship of the depositors."
The cash withdrawal limit has been increased to ₹ 40,000 from ₹ 25,000. On October 4, the regulator had increased the limit up to ₹ 25,000.
The RBI had barred the PMC Bank from carrying out the majority of its routine business transactions for a period of six months, sparking panic among the depositors and sending shock-waves in the city banking and business circles.