The Reserve Bank of India (RBI) on Thursday increased the withdrawal limit for Punjab and Maharashtra Cooperative Bank Ltd (PMC) depositors to ₹10,000 from current ₹1,000. This move would allow 60% of the depositors to withdraw their entire balance, it said.
This followed protests by bank depositors over RBI curbs on Tuesday that came just ahead of the festival and wedding season. The regulation limited cash withdrawal to ₹1000 in six months, an order that many customers termed as ‘ridiculous’.
RBI said that the curbs were necessitated on account of major financial irregularities, failure of internal control and systems of the bank and wrong or under-reporting of its exposures under various off-site surveillance reports. It added that the relaxation has been given to reduce the hardships of the customers.
Apart from limiting the amount that could be withdrawn, the RBI in its earlier order had also debarred the PMC bank for six months from granting, renewing any loans and advances, make any investments, incur any liability, including borrowal of funds or accept fresh deposits, etc, without the prior written approval from RBI.
The RBI has also restricted it from disbursing, agreeing to disburse any payment, whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangements and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI notification of Monday.
{{/usCountry}}The RBI has also restricted it from disbursing, agreeing to disburse any payment, whether in discharge of its liabilities and obligations or otherwise, enter into any compromise or arrangements and sell, transfer or otherwise dispose of any of its properties or assets except as notified in the RBI notification of Monday.
{{/usCountry}}This was followed by panic situation at bank’s Mumbai branches with depositors rushing to seek clarification and to withdraw money. On Thursday morning, some depositors also filed a complaint at Mumbai’s Sion police station against the bank directors accusing them of malpractices.