PMC Bank Row: In a big relief for Punjab and Maharashtra Cooperative Bank (PMC Bank) depositors, the Reserve Bank of India (RBI) today has increased the withdrawal limit from Rs 1,000 to Rs10,000. The RBI on September 24 had restricted PMC bank account holders from withdrawing amount more than ₹1,000 for six months that had sparked state of panic among the bank's depositors.
"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," RBI said in a statement.
The news comes as a bit of relief for account holders but the suspense over their hard-earned money continues. Thousands of people waited anxiously outside the PMC Bank branches in Mumbai and nearby region to know about their fate.
The Reserve Bank of India (RBI) has barred Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) from carrying out "any kind of business transactions" for six months for violating of various regulations.
"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 said.
The restriction on PMC bank has been levelled on the savings and current accounts or any deposit accounts, subject to conditions stipulated in the RBI Directions.
In a statement on Tuesday, the PMC Bank's Managing Director (MD) Joy Thomas said RBI has put the bank under regulatory restrictions to irregularities disclosed to the apex bank.
"As the MD of the Bank, I take full responsibility and assure all the depositors that these irregularities will be rectified before the expiry of six months," Thomas told the banks' thousands of distressed customers. Joy Thomas has been suspended pending an investigation.The PMC Bank was founded in 1984 in a small room in Mumbai, has 137 branches in Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.
PMC Bank had deposits and advances aggregating ₹11,617 crores and ₹8,383 crores--as at March-April 2019, respectively.