In a big relief for Punjab and Maharashtra Co-operative Bank (PMC) customers, the Reserve Bank of India has relaxed its earlier imposed withdrawal limit of Rs 1000 to Rs 10000. The earlier notification issued by the bank on September 2, 2019, had set panic among its customers as it restricted them from withdrawing more than Rs 1000.
Directions under Section 35A of the Banking Regulation Act, 1949 (AACS) – Punjab and Maharashtra Cooperative Bank Limited, Mumbai, Maharashtra – Relaxation in withdrawal limit of Deposit Accountshttps://t.co/oYdCAl1BVB
— ReserveBankOfIndia (@RBI) September 26, 2019
Relaxing the withdrawal limit, the central bank today issued a statement saying, “On a preliminary assessment of the bank’s latest depositor and liquidity profile as furnished by the Administrator, RBI has decided, in the interest of depositors, to review the Directions. Accordingly, vide modified Directive dated September 26, 2019, it has been decided to allow the depositors to withdraw a sum not exceeding ₹10,000/- (Rupees Ten Thousand Only) (including ₹1,000/- wherever already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directive dated September 23, 2019.”
The RBI in its directive has said that after easing of the withdrawal limit restriction, about 60 per cent of the PMC customers will be able to withdraw their full amount. The bank has yet not commented on the fate of the remaining 40 per cent of the customers who have placed their faith in the bank to deposit their money.
Some of the aggrieved customers had filed a joint police complaint on Thursday against the bank’s chairman and its directors for alleged misappropriation of funds of the customers. According to reports, a group of distressed customers went to Sion police station in central Mumbai with a written complaint against the bank officials.
The Punjab and Maharashtra Cooperative Bank had been put under regulatory restrictions by the RBI owing to irregularities disclosed to the apex bank. In a message sent to the shareholders, the bank’s Managing Director Joy Thomas said, “I regret to inform you that your PMC Bank has been put under regulatory restriction under Section 35A of B.R. Act by RBI for a period of 6 months due to irregularities disclosed to RBI. 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.”
