Mumbai: In further relief to customers of troubled Punjab & Maharashtra Cooperative (PMC) Bank, the Reserve Bank (RBI) enhanced Monday withdrawal limit to Rs 40,000 per account from Rs 25,000 per account earlier for six months.
This is the third time the regulator has increased the withdrawal limit since it clamped down September 23 on PMC Bank, capping withdrawals at Rs 1,000 per customer, which led to a lot of distress and criticism.
Earlier in the day, Finance Minister Nirmala Sitharaman said she is closely monitoring the developments at PMC Bank, and the RBI Governor has assured that customers’ interests will be protected.
The RBI, after reviewing the PMC Bank’s liquidity position and its ability to pay its depositors, has decided to further enhance the limit for withdrawal to Rs 40,000, inclusive of Rs 25,000 allowed earlier, the central bank said in a statement.
With the above relaxation, about 77 per cent of the depositors of the bank will be able to withdraw their entire account balance, it said.
The statement further said the RBI is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank.
“The financial position of the bank has been substantially impaired due to fraud perpetrated on it by certain persons. As soon as the matter came to the notice of RBI, action was taken in appointing an Administrator and ensuring that the bank’s available resources are protected and not misused or diverted,” the RBI stated.
The RBI said its administrator has appointed forensic auditors to look into the fraudulent transactions.
Meanwhile, based on a complaint filed by PMC Bank against its officials and borrowers associated with the fraud/financial irregularities at the bank and manipulation of its books of accounts, the Economic Offences Wing, Maharashtra Police, has started its investigations into the matter, the RBI said.
The police had earlier pegged the scam at nearly Rs 4,500 crore and have already made a slew of arrests in the case, including the promoters of realty company HDIL, the Wadhwans, and also the bank’s chief executive and MD Joy Thomas and chairman Waryam Singh who are all behind the bars now.
PTI