MUMBAI: In a relief to depositors in the PMC Bank, the Reserve Bank on Tuesday enhanced the withdrawal limit to Rs 50,000 per account from the earlier Rs 40,000 per account. Last month, the limit was enhanced to Rs 40,000.
This is the fourth time the regulator has increased the withdrawal limit.
The Punjab & Maharashtra Cooperative (PMC) Bank on September 23 capped withdrawals at Rs 1,000 per customer. This move came under severe criticism and protests across the country.
"The RBI, after reviewing the bank's liquidity position and its ability to pay its depositors has decided to further enhance the limit for withdrawal to Rs 50,000, inclusive of Rs 40,000 allowed earlier," the central bank said in a statement.
"This is expected to ease the process of withdrawals," it added.
The apex bank said that with this relaxation, now more than 78 per cent of the bank's depositor can withdraw their full amount. The bank also ensured that it is closely monitoring the situation.
PMC Bank is among the top 10 urban cooperative banks. It was taken over by the RBI's administration on September 23 for six months due to massive under-reporting of dud loans.