New Delhi: Bringing relief to thousands of stressed account holders of Punjab and Maharashtra Co-Operative Bank or PMC Bank, the Reserve Bank of India today raised withdrawal limit to Rs. 40,000 from earlier withdrawal limit of Rs. 25,000.
"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, inclusive of Rs. 25,000 allowed earlier," the central bank said in a statement.
Now, more than 77 per cent of the bank depositors will be able to withdraw their entire account balance, RBI's statement said.
PMC Bank is facing a crisis after an alleged Rs 4,500 crore scam came to light last month. The RBI had capped withdrawals from the bank at Rs 1,000 and later increased it to Rs 25,000 following protests by depositors.
The bank had allegedly lent over 70 per cent of its Rs 9,000 crore in loans to near-bankrupt realty player HDIL.