Withdrawal limit for PMC bank depositors raised to Rs 50,000

In further relief to customers of scam-hit Punjab & Maharashtra Cooperative (PMC) Bank, the Reserve Bank on Tuesday enhanced the withdrawal limit to Rs 50,000 per account from Rs 40,000 per account.

This is the fourth time the regulator has increased the withdrawal limit since it clamped down on PMC Bank on September 23, capping withdrawals at Rs 1,000 per customer, which led to a lot of distress and criticism.

Last month the limit was enhanced to Rs 40,000 per account.

"The RBI, after reviewing the bank's liquidity position and its ability to pay its depositors has decided to further enhance the limit for withdrawal to Rs 50,000, inclusive of Rs 40,000 allowed earlier," the central bank said in a statement.

With the above relaxation, more than 78 per cent of the depositors of the bank will be able to withdraw their entire account balance. The RBI has also been decided to allow the depositors to withdraw from the bank's own ATMs within the prescribed limit of Rs 50,000.

"This is expected to ease the process of withdrawals," it added.