Withdrawal limit raised to ~50,000

In a relief to the aggrieved depositors of Punjab and Maharashtra Cooperative (PMC) Bank, the Reserve Bank of India (RBI) on Tuesday raised the withdrawal limit to ~50,000 from ~40,000 earlier. This is the fourth revision in withdrawal limit by the RBI since the PMC Bank scam came to the fore. The RBI had first restricted the withdrawal limit to just ~1,000.

“It has also been decided to allow the depositors to withdraw from the bank’s own ATMS within the prescribed limit of ~50,000. This is expected to ease the process of withdrawals,” the RBI said. The rise in withdrawal limit is inclusive of ~40,000 allowed earlier, which means if a depositor has withdrawn ~40,000 from his/her account, an additional ~10,000 can be withdrawn.

"With the above relaxation, more than 78 per cent of the depositors of the bank will be able to withdraw their entire account balance," the RBI said.

Last month, the RBI had allowed the depositors to withdraw up to ~ 40,000 of the total balance in their account. Prior to that, the withdrawal of deposits was limited up to ~25,000.