PMC Bank Crisis: RBI Raises Withdrawal Limit to Rs 40,000, Day After Nirmala Sitharaman Meets Shaktikanta Das
PMC Bank customers panic after RBI imposed restrictions on Sept 23 | (Photo Credits: YouTube/Screengrab)

Mumbai, October 14: The Reserve Bank of India on Monday increased the withdrawal limit for Rs 25,000 to Rs 40,000 for the depositors of the Punjab and Maharashtra Cooperative (PMC) Bank. This new development comes days after the Union Finance Minister Nirmala Sithraman met the RBI Governor Shaktikanta Das in the financial capital and sort solutions to the issues of distressed account holders of PMC Bank.

Informing about the latest update, RBI stated, "The Reserve Bank of India, 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 40,000/- (Rupees Forty Thousand only), inclusive of ₹ 25,000 allowed earlier." Following this move, about 77% of the depositors of the bank will be able to withdraw their entire account balance. PMC Bank Crisis: RBI Governor Shaktikanta Das Assures Nirmala Sitharaman To Keep Clients and Their Concerns on Top Priority, FM Says Govt 'Understands Justified Worries of Customers'.

Here's the RBI update:

Earlier, the cash-crunched account holders were permitted to withdraw an amount of Rs 25,000 in six months. This limit was too revised on October 3, 2019, by RBI after a slew of protests by the distressed account holders. Meanwhile, Sitharaman met the RBi Governor on Sunday and was assured by him that clients and their concerns would be kept on top priority.

After the meeting, the Union Finance Minister informed that her ministry understands the "justified worries" of the customers and assured that the customers' concerns are comprehensively addressed. She had also stated that the government is doing everything to resolve the issue. Shivajirao Bhosale Cooperative Bank Follows PMC Bank Suit, RBI Restricts Withdrawal Limit to Rs 1,000; Here's Full Report.

It is to be known that on Monday Enforcement Directorate has seized and identified movable and immovable assets worth more than Rs 3,830 crores owned by Housing Development and Infrastructure Limited (HDIL), its directors, PMC Bank officials and others related entities in the PMC Bank fraud case.

Apart from the raids, Mumbai Police Economic Offence Wing arrested ex-Chairman of PMC Bank S Waryam Singh last Saturday. On October 3, the police nabbed HDIL Chairman and Managing Director Rakesh Kumar Wadhwan and Sarang Wadhawan, respectively, and froze their assets worth Rs 3,500 crore.