Withdrawal limit for PMC bank accounts Increased to Rs 10,000 from Rs 1000 by Reserve Bank of India

The Reserve Bank of India (RBI) has increased withdrawal limit for Punjab and Maharashtra Co-operative (PMC) Bank account holders to Rs 10,000 for the next six months. The move is expected to benefit over sixty per cent of the bank's customers.

Earlier the withdrawal limit for each account had been restricted to Rs 1,000 after the Mumbai-based PMC bank was found violating regulations, including underreporting non-performing assets. The restriction was put in place for six months from September 23.

The development brings relief to bank account holders who will now be able to withdraw Rs 10,000 in six months instead of just Rs 1,000 that was fixed earlier.

The Reserve Bank of India (RBI) has relaxed the withdrawal limit for Punjab and Maharashtra Co-operative Bank account holders to Rs 10,000 for six months.

Earlier the withdrawal limit for each account had been restricted to Rs 1,000 after the Mumbai-based PMC bank was found violating regulations. The RBI had restricted the bank from issuing loans or open fixed deposit accounts for the next six months.

The bank’s customers were deeply concerned on the RBI’s limitations on withdrawal limits from each account and were planning to protest across the country. PMC Bank is a scheduled urban co-operative bank with its area of operation in the states of Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh.

Many of the banks' customers have been protesting both--on social media and at various PMC bank branches--following the announcement. However, fresh development is expected to provide some relief to protesting customers.

Speaking exclusively to India Today TV, the RBI-appointed administrator of PMC Bank JB Bhoria said earlier that the bank has enough security and flow of money will be ensured.

Depositors do not have to worry, don't believe in rumours, he said.