RBI raises withdrawal limit of Punjab & Maharashtra Cooperative Bank Ltd customers from Rs 1,000 to Rs 10,000

In a major relief for thousands of customers of Punjab and Maharashtra Cooperative Bank Limited (PMC), Mumbai, the Reserve Bank of India on Thursday enhanced the withdrawal limit of the PMC customers from Rs 1,000 to Rs 10,000.

On Tuesday (September 24), the RBI had imposed restrictions on PMC under which the customers were allowed to withdraw only up to Rs 1,000. The restrictions, which were imposed for six months, also barred the bank from disbursing any fresh loan or open a Fixed Deposit account in the said period. 

The restrictions were imposed on the bank by the RBI under Section 35A of the Banking Regulation Act, 1949. A notification released in this regard by the central bank reads, “According to the directions, depositors will be allowed to withdraw a sum not exceeding 1,000 (Rupees one thousand only) of the total balance in every savings bank account or current account or any other deposit account by whatever name called, subject to conditions stipulated in the RBI Directions.”

The notification further directs the bank to “not grant or renew any loans and advances, make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits, disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI directions dated September 23, 2019”.