Withdrawal limit for PMC Bank depositors now Rs 25,000

Mumbai, Oct 3 (SocialNews.XYZ) The Reserve Bank of India on Thursday raised the withdrawal limit for depositors of Punjab and Maharashtra Cooperative Bank Ltd to Rs 25,000 from Rs 10,000.

"The Reserve Bank of India again reviewed the bank's liquidity position and, with a view to reducing the hardship of the depositors, has decided to further enhance the limit for withdrawal to Rs 25,000.

"With the above relaxation, more than 70 per cent of the depositors of the bank will be able to withdraw their entire account balance. The Reserve Bank is monitoring the position of the bank and will continue to take necessary steps in the interest of depositors," the RBI said on Thursday.

The apex bank has also decided to appoint a committee of three members in terms of section 36AAA(5)(a) read with Section 56 of the Banking Regulation Act 1949, to assist the Administrator of Punjab and Maharashtra Cooperative Bank Ltd.

Mumbai police on Thursday arrested two directors of the Housing Development Infrastructure Ltd (HDIL) in the PMC Bank scam, an official said.

Rakesh Wadhawan and his son Sarang Wadhawan, accused of loan default, have been arrested by the Economic Offences Wing (EOW).

Properties worth Rs 3,500 crore of HDIL have also been frozen by the EOW, he said. "We arrested the two directors of HDIL after a detailed interrogation," the official said.

PMC Bank used more than 21,000 fictitious accounts to hide loans it made, according to a police complaint lodged by officials, in the latest banking fraud case to spook the country's depositors and investors.

Source: IANS