Categories: Banking

RBI enhances withdrawal limit for PMC’ depositors to Rs 1 Lakh

The Reserve Bank of India has enhanced the withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Limited, Mumbai to Rs 1 Lakh per depositor. The withdrawal limit was earlier set at Rs 50,000. According to RBI, with the enhancement of the withdrawal limit, more than 84% of the depositors of the bank will be able to withdraw their entire account balance.

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RBI placed the PMC bank under All-Inclusive Directions under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949 with effect from close of business on 23rd September 2019, in the interest of depositor protection. These directives were applicable till June 22, 2020. But, due to lockdown on account of COVID-19 pandemic the resolution process of the bank was negatively affected. Hence, these directives has been extended by RBI for a further period of six months from June 23, 2020 to December 22, 2020 subject to review.

Important takeaways for all competitive exams:

  • RBI 25th Governor: Shaktikanta Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.

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