MUMBAI: The Reserve Bank of India (RBI) decided to further enhance the withdrawal limit for the depositors of the beleaguered Punjab and Maharashtra Cooperative Bank Ltd (PMC Bank) to Rs40,000 from the earlier Rs25,000.
With this relaxation, about 77 per cent of the depositors of the bank will be able to withdraw their entire account balance, according to an RBI release.
RBI had on October 3, 2019 had permitted the depositors of the bank to withdraw up to Rs25,000 of the total balance in their accounts. Soon after the detection of trouble in the bank, RBI had immediately restricted the withdrawal to Rs1000, which was subsequently increased to Rs10,000.
RBI noted that the financial position of the bank has been substantially impaired due to fraud perpetrated on it by certain persons. As soon as the matter came to the notice of Reserve Bank of India, 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 (EOW), 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 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,” RBI statement added.
The Reserve Bank said it is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank.