Categories: Business

Covid-19 RBI gives big relief to PMC bank customers in crisis, raised funds withdrawal limit from account

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RBI extends restrictions on PMC Bank for 6 months, withdrawal limit now Rs 1 lakh

Mumbai. In a major relief to the account holders of Punjab and Maharashtra Cooperative Bank (PMC Bank), the Reserve Bank has increased the withdrawal limit from their accounts to Rs 1 lakh from Rs 50,000. However, at the same time, the central bank has increased the regulatory curb on the co-operative bank which has been a victim of scam for six months and till 22 December. The Reserve Bank has also increased the withdrawal limit for account holders of four more cooperative banks. These banks are also under regulatory control. Among these banks, Sri Guru Raghavendra Sahakar Bank Niyamitha based in Bangalore and Youth Development Cooperative Bank Ltd. of Kolhapur. Are included.

The Reserve Bank imposed several regulatory restrictions on PMC Bank, Mumbai on 23 September 2019. At that time many financial irregularities were revealed in the bank. Also, the bank did not give the correct information about the loan given to the real estate company HDIL. The Reserve Bank said that with the withdrawal limit increasing, 84 percent of the bank's customers will be able to withdraw all their money from the accounts. Earlier, on 5 June 2019, the Reserve Bank raised the withdrawal limit to Rs 50,000 per depositor. At the same time, the bank was increased to 22 June 2020.

The central bank said in a statement that besides the liquidity position of the bank, its ability to pay depositors, the withdrawal limit per depositor is being raised from Rs 50,000 to Rs 1 lakh to relieve depositors in the midst of the Kovid-19 crisis. . The Reserve Bank said it was in talks with shareholders to explore the possibility of a solution for the bank. However, this process has been affected due to the applicable lockdown caused by the corona virus. The Reserve Bank said that due to the negative net worth of PMC Bank and the legal procedures for recovery of submerged debt, the solution related to the bank is also facing challenges.

Earlier, the Reserve Bank had dissolved the board of directors of PMC Bank and appointed JB Bhoria, a former central bank official, as the bank's administrator. Regarding Shri Guru Raghavendra Sahakar Bank, the Reserve Bank said that the limit for withdrawal of account holders of this bank has been increased to one lakh rupees. It also includes an earlier withdrawal limit of Rs 35,000. The central bank said that now 54 percent of the bank's account holders will be able to withdraw all their money. Withdrawal in the case of Kozhikode's Kerala Mercantile Cooperative Bank has been increased to Rs 50,000. This includes an earlier withdrawal limit of Rs 2,000. The Reserve Bank said that 89 percent of the account holders of this bank will be able to withdraw all their money from the accounts.

Hindu Cooperative Bank Ltd. In Pathankot's case, the withdrawal limit has been increased from Rs 25,000 to Rs 50,000. 79 percent of the bank's customers will be able to withdraw all their money from the accounts. Withdrawal limit for the account holders of Youth Development Cooperative Bank in Kolhapur has been increased to Rs 20,000. Earlier this limit was Rs 5,000.

This post was published on June 20, 2020 11:24 am

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