RBI relief for PMC Bank depositors, withdrawal limit hiked to Rs 40,000

RBI said it reviewed the bank's liquidity position and, with a view to reducing the hardship of the depositors, it decided to further enhance the limit

2 min read Last Updated : Oct 16 2019 | 8:29 AM IST

The Reserve Bank of India (RBI) has increased the withdrawal limit for depositors of Punjab and Maharashtra Co-operative (PMC) Bank to Rs 40,000.

This is the third withdrawal limit increase by the RBI, in which it has increased the withdrawal amount. On September 24, the RBI set the withdrawal limit at Rs 1,000 per account, which it increased to Rs 10,000 the next day. On October 3, this limit was increased to Rs 25,000.

The RBI said it reviewed the bank’s liquidity position and, with a view to reducing the hardship of the depositors, it decided to further enhance the limit. With this relaxation more than 77 per cent of the depositors will be able to withdraw their entire account balance. In a statement, the RBI said a forensic auditor had been appointed by the administrator to look into the related transactions. Economic Offenses Wing of the Maharashtra Police is already investigating the matter.

Joy Thomas pins blame on Wadhawans, Waryam Singh

Joy Thomas, the suspended managing director of Punjab and Maharashtra Co-operative (PMC) Bank, in his interrogation by the Economic Offences Wing (EOW) of Mumbai Police, revealed he was acting on the instructions of Housing Development & Infrastructure (HDIL) promoters Rakesh and Sarang Wadhawan and former PMC Bank chairman S Waryam Singh to hide the bank’s bad debts given to HDIL Group from regulators and falsifying accounts to paint a rosy picture of the bank.

However, when the accused came face to face, they shifted the onus of their acts onto each other, revealed the remand extension application given by the EOW in a Mumbai court on Monday.

The court extended the police custody of Singh and Wadhawans till October 16.

The EOW in its remand application said that Singh, who served on the board of HDIL till 2009 and was later appointed chairman of PMC Bank, was acting at the behest of Wadhawans. Moreover, he has been accused by the EOW of playing a “double role”, holding positions at PMC Bank as well as HDIL.