PMC Bank crisis: Relief for depositors; withdrawal limit raised to this much

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Updated: October 14, 2019 7:16:37 PM

In further relief for depositors, the Reserve Bank of India raised the withdrawal limit at the scam-hit PMC bank on Monday. Check how much money can the depositors withdraw now.

Good news! 6 public sector banks have cut their lending rates upto 25 bpsThe RBI in September this year had slapped restrictions on PMC Bank or various irregularities.

In further relief for depositors, the withdrawal limit at the scam-hit PMC bank has been increased to Rs 40,000 on Monday. The current limit for deposit withdrawals is capped at Rs 25,000. The RBI in September this year had slapped restrictions on PMC Bank or various irregularities. “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 ₹ 40,000/- (Rupees Forty Thousand only), inclusive of ₹ 25,000 allowed earlier. With the above relaxation, about 77% of the depositors of the bank will be able to withdraw their entire account balance,” RBI said in a statement.

The restrictions from the RBI came in after it found the bank’s exposure to real estate developer HDIL was in too much in excess of what the regulations require and also as the lender hid the NPAs of HDIL. PMC’s exposure to HDIL is around Rs 6,500 crore, which is 73 percent of its loan book of Rs 8,880 crore, as per bank’s own admission. Economic Offences Wing has already arrested Rakesh and Sarang Wadhawan, the promoters of Housing Development and Infrastructure Ltd (HDIL), along with former chairman of the bank Waryam Singh in connection with frauds at the bank.

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“The Reserve Bank is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank,” the central bank also said. Meanwhile, Finance Minister Nirmala Sitharaman today said she is closely monitoring the developments at PMC Bank, and the RBI Governor has assured that customers’ interest will be protected. The bank was put under ‘directions’ by the RBI last month due to weak financial health.

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