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

The Reserve Bank of India (RBI) has once again enhanced the withdrawal limit for depositors of Punjab and Maharashtra Co-operative Bank to Rs 25,000 from Rs 10,000. The central bank promised to keep an eye on the position of the co-operative bank and take necessary steps in the interest of PMC Bank depositors.

"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," RBI said in statement on Thursday.

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 central bank further added.

The RBI has also decided to form a three-member committee under the provisions of Banking Regulation Act to assist the administrator for PMC Bank. On Monday, the apex bank had superseded the board of the PMC Bank and appointed Jai Bhagwan Bhoria as the new administrator of the embattled lender with all the powers of the board. #casansaar (Source - PTI, BusinessToday)