PMC Bank: RBI eases withdrawal norms, maximum limit capped at Rs 10000
PMC Bank: RBI eases withdrawal limits, PMC Bank account holders can now withdraw up to Rs 10,000 from any of their accounts.
PMC Bank: The RBI has eased the withdrawal limit imposed on the Punjab and Maharashtra Co-operative (PMC) Bank, increasing it from Rs 1000 to Rs 10, 000. With this relaxation, 60 percent of the Bank's depositors will be able to withdraw all their money from their accounts.
The PMC Bank account holders will now be able to withdraw up to Rs 10,000 including the Rs 1,000 withdrawn already from any of their accounts including savings, current or any other deposit account.
RBI revealed that the relaxation was brought on to ease the hardship of the depositors of PMC Bank. The apex bank stated that it is closely monitoring the whole situation and will continue to take steps to safeguard the interest of the bank's depositors.
RBI imposes restrictions on PMC Bank
The Reserve Bank of India had on September 24, 2019 imposed restrictions on Punjab and Maharashtra Co-operative (PMC) Bank for a period of six months. The restrictions were issued on money withdrawals, issuance of loans and opening of fixed deposit accounts.
The RBI had also set a withdrawal limit of Rs 1000, as a result of which, depositors were not able to withdraw more than Rs 1000 from their savings, current or any other account in the PMC bank.
RBI Directions: Key Highlights
• The PMC bank cannot issue or renew loans and advances or open fixed deposit accounts for the next six months.
• The PMC bank has also been prohibited from making any type of investment and accepting fresh deposits without advance approval from the RBI.
• The bank has also been restricted from incurring any liability including borrowing of funds or disbursing or even agreeing to disburse any payment without prior written approval from RBI.
• The PMC bank account holders will not be able to withdraw more than Rs 1000 from any of their accounts. Now, the withdrawal limit has been enhanced to Rs 10,000 for the six-month period.
Has PMC Bank shut down?
RBI clarified that the restrictions should not be viewed as cancellation of PMC’s banking licence by the central bank. The PMC Bank will continue to undertake banking business with the restrictions until further instructions.
The RBI may later consider modifications of these directions depending upon circumstances. For now, the restrictions will be in place for 6 months from the closure of the bank’s business on September 23, 2019. The RBI directed that a copy of the new directive should be forwarded to each depositor and will be displayed on the bank's website.
Speaking on the issuance of restrictions by the central bank, PMC Bank's MD Joy Thomas said that bank had been put under regulatory restrictions due to irregularities disclosed to the apex bank. Thomas said that as the MD of the Bank, he takes full responsibility and assured all the depositors that the irregularities will be rectified before the expiry of six months.
The PMC Bank, founded in Mumbai in 1984, is a multi-state urban co-operative bank.
The bank currently has 137 branches in six states across the country including Maharashtra, Goa, Karnataka, Gujarat, Madhya Pradesh, Andhra Pradesh and Delhi.
The bank ranks among the top 10 cooperative banks in the country.
The bank had deposits and advances averaging Rs 11,617 crore and Rs 8,383 crore respectively at the end of March 2019.