With the above relaxation, more than 60% of the depositors of the Bank will be able to withdraw their entire account balance, RBI said.
Amid outrage over the withdrawal limit of 1,000 per account for Mumbai-based Punjab and Maharashtra Co-Operative Bank, the Reserve Bank of India (RBI) on Thursday revised the limit saying that account holders can now withdraw Rs 10,000 over the next six months.
The RBI had on September 23 placed restrictions over account holders of PMC Bank after allegations of financial irregularities.
"The Directions were necessitated on account of major financial irregularities, failure of internal control and systems of the bank and wrong/under-reporting of its exposures under various Off-site Surveillance reports to RBI that came to the Reserve Bank’s notice recently," the RBI said in a statement.
The RBI also restricted the bank to not grant or renew any loans and advances, make any investment or incur any liability, including borrower of funds and acceptance of fresh deposits for six months.
The restrictions put Rs 11,600 crore of deposits under high risk.
The direction created a panic and anger among depositors, with thousands of them marching to the bank's Sion branch, the head office, in Mumbai.
Revising its earlier order, the RBI said it has decided to allow the depositors to withdraw a sum not exceeding Rs 10,000. The new directions were issued after a preliminary assessment of the bank’s latest depositor and liquidity profile as furnished by the Administrator, the RBI said.
With the above relaxation, more than 60% of the depositors of the Bank will be able to withdraw their entire account balance, it added.
PMCB, which has 137 branches across Maharashtra, Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh and Madhya Pradesh, was started by a group of Sikh entrepreneurs in 1984 in Mumbai.
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