STOCK MARKET BSE NSE

RBI raises withdrawal limit for PMC Bank depositors to Rs 25,000

The apex bank has also decided to appoint a committee of three members to assist the Administrator of Punjab and Maharashtra Cooperative Bank Ltd.

Published: 03rd October 2019 10:44 PM  |   Last Updated: 03rd October 2019 10:44 PM   |  A+A-

Mumbai Police personnel stand guard outside Punjab and Maharashtra Cooperative Bank PMC at GTB Nagar in Mumbai

Mumbai Police personnel stand guard outside Punjab and Maharashtra Cooperative Bank PMC at GTB Nagar in Mumbai (File Photo | PTI)

By IANS

MUMBAI: The Reserve Bank of India on Thursday raised the withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd to Rs 25,000 from Rs 10,000.

"The Reserve Bank of India again reviewed the bank's liquidity position and, with a view to reducing the hardship of the depositors, has decided to further enhance the limit for withdrawal to Rs 25,000." With the above relaxation, more than 70 per cent of the depositors of the bank will be able to withdraw their entire account balance.

"The Reserve Bank is monitoring the position of the bank and will continue to take necessary steps in the interest of depositors," the RBI said on Thursday.

The apex bank has also decided to appoint a committee of three members in terms of section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act 1949, to assist the Administrator of Punjab and Maharashtra Cooperative Bank Ltd.

Mumbai police on Thursday arrested two directors of the Housing Development Infrastructure Ltd (HDIL) in the PMC Bank scam, an official said.

Rakesh Wadhawan and his son Sarang Wadhawan, accused of loan default, have been arrested by the Economic Offences Wing (EOW).

Properties worth Rs 3,500 crore of HDIL have also been frozen by the EOW, he said. "We arrested the two directors of HDIL after a detailed interrogation," the official said.

PMC Bank used more than 21,000 fictitious accounts to hide loans it made, according to a police complaint lodged by officials, in the latest banking fraud case to spook the country's depositors and investors.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp