Good news for PMC Bank account holders! RBI increases withdrawal limit

PMC Bank crisis: The Reserve Bank of India (RBI) on Tuesday increased the ATM withdrawal limit for PMC account holders. The apex bank has decided to increase the PMC Bank ATM withdrawal limit to Rs 50,000. This is done in order to ease the process of withdrawals, according to RBI.

The RBI has put a restriction on PMC Bank for six months and asked it not to grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits. The bank is under tight scrutiny after an alleged fraud of Rs 4,355 crore made headlines.

Though the deposit withdrawal is kept at Rs 40,000 by the RBI, which was capped Rs 10,000 initially.

Notably, the PMC Bank crisis has sparked renewed concerns about India's banking sector. Currently, the RBI has taken charge of PMC, one of India's top five co-operative lenders with more than 900,000 depositors, and has barred the bank from renewing or granting any loans or making investments without its prior approval.

Currently, the RBI has appointed an officer to investigate the matter and a case has also been registered in the Economic Offenses Wing of the Mumbai Police.