The Reserve Bank on Friday increased the withdrawal limit for the depositors of Punjab and Maharashtra Cooperative (PMC) Bank, to Rs 1 lakh while extending the regulatory restriction on the cooperative bank by another six months till December 22. The earlier withdrawal limit was Rs 50,000 per depositor. PMC, a Multi-State Urban Cooperative Bank was placed under All-Inclusive Directions with effect from close of business on September 23, 2019, in the interest of depositor protection. The withdrawal limit under the directions was last enhanced to Rs 50,000 per depositor on November 5, 2019 and the Directions were last extended vide Directive dated March 21, 2020 upto June 22, 2020.
Reserve Bank has been engaging with the stakeholders to explore the possibility of a resolution of the bank. However, the process has been affected due to the lockdown on account of COVID 19 and the continuing uncertainty around the pandemic. Further, the extent of the negative net worth of the bank, and the legal processes involved in recovery of bad debts also pose challenges/limitations in resolution of the bank.
The consultation with various stake-holders and authorities for resolution of the bank is continuing. It is, therefore, considered necessary to extend the aforesaid Directions for a further period of six months to take the process forward. Accordingly, it is hereby notified for the information of the public that the validity of the aforesaid Directive dated September 23, 2019, as modified from time to time, has been extended for a further period of six months from June 23, 2020 to December 22, 2020 subject to review.
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