Mumbai: The Reserve Bank of India (RBI) has raised the withdrawal limit for account holders of trouble-torn Punjab Maharashtra Cooperative Bank to Rs 40,000 from Rs 25,000 after going through its liquidity position and ability to pay its depositors.
The central bank in a statement issued on Monday extended the limit and added that the new limit will enable 77 per cent of the account holders withdraw their entire balance from the bank.
"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 statement read.
This is the third time, the RBI has relaxed the withdrawal limit since it suspended all major activities of the bank and put it under its close monitoring on Sept 23.
The RBI in the statement added that it is "closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank".
PMC Bank is a scheduled cooperative bank with operations in Maharashtra, Karnataka, Delhi, Goa, Gujarat, Madhya Pradesh and Andhra Pradesh through its 137 branches.
The restrictions were imposed after RBI detected certain irregularities apart from un-reported NPAs.