RBI increases withdrawal limit to Rs.10000 for PMC Bank's depositors

In a relief to protesting account holders of of Punjab and Maharashtra Cooperative Bank (PMC), Reserve Bank of India (RBI), on Thursday, hiked withdrawal limit to Rs 10,000 from Rs 1,000 for PMC's depositors, according to PTI. This development comes two days after RBI took control of bank for six-months. It h also capped withdrawals at ₹1,000 per account and bank is t allowed to make any fresh loans for six months. This anuncement by Central bank caused chaos throughout financial capital, with panicked account holders crowding bank.

RE | PMC says has eugh liquidity, depositors' money safe after RBI's cap

Employees protest against HDIL, account holders protest at PMC

Earlier in day, employees of Punjab and Maharashtra Co-operative (PMC) Bank sat outside residence of owner of Housing Development and Infrastructure Ltd (HDIL) group protesting against company, according to ANI. bank h mitted that HDIL was a major defaulter in bank. Apart from employees, account holders too were seen protesting outside bank on Thursday. Long-time account holders were lamenting on withdrawal limit.

RE | Bank employees to go on a nationwide bank strike on Sept 26 and 27

PMC mits HDIL main reason for crisis

PMC h mitted on Wednesday, that one large account-HDIL was sole reason for present crisis, as per PTI. bank's former managing director Joy Thomas h allayed fears stating all accounts were safe and fully-secured. He said bank has cash liquidity of around Rs 4,000 crore in form of SLR (statutory liquidity ratio) and CRR or cash reserve ratio. But, he mitted that problem arose because of under-reporting of NPAs from HDIL account.

"All or loans are more than fully-secured and re is need for any customer to panic," Thomas told PTI.  He ded, "We have eugh liquidity and back-up securities for all what we have lent. As a cooperative bank, we never do unsecured lending and our loan cover ratio has always been 100-110 percent," Thomas said.  He ded that slum redevelopment company, which has landed in cash crunch, has alrey gone to bankruptcy w, has been delaying payments for past few years.

Re: Bank Unions object merger, threaten two-day strike from Spetember 26

PMC and RBI assures customers

Thomas said that bank will be out of regulatory restrictions much ahe of RBI's six months period, say in two-three months. He said focus is to safeguard interest of small depositors as it is festive season and y would want money. RBI too h dismissed reports about closing down certain commercial banks as false. Supporting Central Bank's statement, Finance Secretary Rajeev Kumar too has ded that re was question of bank closure, as reported by ANI. He ded that such mischievous rumours are baseless, as banks are articles of faith.

WATCH | RBI imposes restrictions on PMC Bank, chaos and panic ensues