The Reserve Bank of India on Monday increased the withdrawal limit for account holders of Punjab and Maharashtra Co-operative Bank from Rs 25,000 to Rs 40,000.
“The Reserve Bank of India, 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 40,000, inclusive of Rs 25,000 allowed earlier,” said the central bank. “With the above relaxation, about 77% of the depositors of the bank will be able to withdraw their entire account balance.”
The central bank added it was “closely monitoring” the developments in the bank, and would continue to take measures in the interest of depositors.
Last month, the central bank had imposed restrictions and said depositors would not be allowed to withdraw more than Rs 1,000 for six months. The central bank also barred the lender from granting or renewing loans and advances, and making investments. A few days later, it increased the withdrawal limit to Rs 25,000.
Earlier in the day, Union Finance Minister Nirmala Sitharaman said RBI Governor Shaktikanta Das had told her he would keep the interests of the customers in mind while trying to resolve the crisis. The Enforcement Directorate is conducting an investigation into allegations that the bank did not report all non-performing assets, or bad loans, after providing funds to a number of companies. The total amount of such loans is estimated to be between Rs 2,000 crore and Rs 2,500 crore.
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