PMC Bank Update: RBI doubles withdrawal limit to Rs 1 Lakh

Offering some relief to the customers of the troubled PMC bank, the Reserve Bank of India (RBI) today doubled the limit for withdrawal for the depositors to Rs 1 lakh per depositor.

This increased limit is inclusive of the Rs 50,000 withdrawal allowed earlier by the regulator.

PMC Bank“With the above relaxation, more than 84 per cent of the depositors of the bank will be able to withdraw their entire account balance,” said RBI in its statement.

Simultaneously, the validity of RBI’s new directives on the lender has been extended for a period of six months more from June 23, 2020 to December 22, 2020 subject to review.

The central bank stated that it has been discussing with the stakeholders in a bid to explore the possibility of ensuring resolution of the lender. However, the process has slowed down due to the lockdown imposed due to COVID 19 and the ongoing uncertain times, it added.

Besides, the apex bank that negative net worth of the bank and tedious and complex legal process involved in recovery of bad debts are also posing challenges/limitations in resolution.

Also Read:Maharashtra State Co-operative Bank proposes branch merger of PMC Bank

“Nevertheless, consultation with various stake-holders and authorities for resolution of the bank is continuing.

“It is, therefore, considered necessary to extend the aforesaid Directions for a further period of six months to take the process forward,” the RBI said.

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