RBI hikes withdrawal limit to Rs 10,000 from Rs 1,000 for PMC depositors

RBI said the relaxation has been granted with a view to reducing the hardship of depositors

In a major relief to the hapless customers of crippled Punjab & Maharashtra Cooperative Bank, the Reserve Bank on Thursday increased cash withdrawal limit to Rs 10,000 per account-holder from Rs 1,000 set earlier over the next six months.

The regulator also said the relaxation in withdrawals will take care of over 60 percent of the customers of the cooperative bank focused on low-income customers.

The RBI had Tuesday imposed a slew of restrictions on PMC Bank after finding many irregularities in its books, including massive under-reporting of NPAs. The lender is not allowed to offer new loans or accept deposits.

"It has