RBI relief for PMC depositors, limit hiked to ~40,000

The Reserve Bank of India (RBI) has increased the withdrawal limit for depositors of Punjab and Maharashtra Co-operative (PMC) Bank to ~40,000.

This is the third withdrawal limit increase by the RBI, in which it has increased the withdrawal amount. On September 24, the RBI set the withdrawal limit at ~1,000 per account, which it increased to ~10,000 the next day. On October 3, this limit was increased to ~25,000.

The RBI said it reviewed the bank’s liquidity position and, with a view to reducing the hardship of the depositors, it decided to further enhance the limit. With this relaxation more than 77 per cent of the depositors will be able to withdraw their entire account balance. In a statement, the RBI said a forensic auditor had been appointed by the administrator to look into the related transactions. Economic Offenses Wing of the Maharashtra Police is already investigating the matter.

Joy Thomas pins blame on Wadhawans, Waryam Singh

Joy Thomas, the suspended managing director of Punjab and Maharashtra Co-operative (PMC) Bank, in his inter

rogation by the Economic Offences Wing (EOW) of Mumbai Police, revealed he was acting on the instructions of Housing Development & Infrastructure (HDIL) promoters Rakesh and Sarang Wadhawan and former PMC Bank chairman S Waryam Singh to hide the bank’s bad debts given to HDIL Group from regulators and falsifying accounts to paint a rosy picture of the bank.