New Delhi: Giving further relief to account holders and depositors of the Punjab and Maharashtra Cooperative (PMC) Bank, the Reserve Bank of India on Thursday enhanced the withdrawal limit from Rs 10,000 to Rs 25,000, the central bank said in a statement. Earlier the RBI had put a cap on the withdrawal limit at Rs1,000 and later enhanced it to Rs 10,000.
The move from the RBI comes days after a PIL was filed in the Bombay High Court, challenging the restrictions imposed by the central bank on the crisis-hit PMC Bank. The plea was filed by an NGO Consumer Action Network and eight persons, who claimed to be depositors and account holders in the PMC Bank.
Citing financial irregularities, the RBI had on September 23 imposed regulatory restrictions on the PMC Bank for six months. It initially had kept the withdrawal limit for account holders at Rs 1,000 for six months, which was later raised to Rs 10,000.
The RBI banned the cooperative bank from extending fresh loans or taking deposits which later led to protests by depositors and account holders of the bank.
The PIL in the Bombay High Court slammed the RBI for its decision to put curbs on the beleaguered 35-year-old multi-state scheduled bank. “The RBI decision is irrational and arbitrary and is violative of the fundamental rights of the common public. There was no prior intimation given by the RBI,” the petition said.
While seeking to quash the RBI’s decision, the PIL urged the High Court to direct the RBI to strengthen regulatory laws to ensure such situations do not arise in other banks.
With a network of 137 branches, PMC Bank is a multi-state scheduled urban cooperative bank which operates in states such as Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh. One of the prominent commercial banks in India, the PMC Bank ranks among the top 10 cooperative banks in the country.
(With inputs from PTI)