New Delhi | Jagran Business Desk: The Reserve Bank of India has raised the withdrawal limit of debt-ridden Punjab and Maharashtra Cooperative (PMC) Bank Limited to Rs 50,000 from 40,000. Last month, the RBI had allowed its customers to withdraw cash up to Rs 40,000 from Rs 10,000.

In a statement, the central bank said, "The RBI, 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 50,000, inclusive of Rs 40,000 allowed earlier."

In September, the RBI had imposed restrictions on the activities of PMC Bank for six months and asked the private player not to grant or renew any new loans, investments, borrowing of funds and accept fresh deposit after alleged fraud of Rs 4355 came to light.

Initially, the bank had set a limit of Rs 1,000 but raised to Rs 10,000 after strikes by bank customers.

The decision comes amid protest by the depositors outside RBI office in Mumbai. Professor Chandrasekhar, a bank depositor said, "We have been protesting for 41 days. 10 deaths have taken place. As a senior citizen, I have been pleading to get back my money. There is collusion between RBI and PMC officials. I need money for my wife's surgery. All my money is in PMC," as quoted by ANI.

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The above relaxation will help over 78 per cent depositors to withdraw their entire sum deposited in the bank. 

Meanwhile, Enforcement Directorate (ED) has seized and identified assets worth over Rs 3,830 crore owned by Housing Development and Infrastructure Limited (HDIL)-- real estate development company-- in connection with the case.

Over a long period of time, the PMC had given over Rs 6500 crore loans to HDIL that is 73 per cent of its total advances that left it bankrupt. The bank's total loan stands at Rs 8,880 crore and deposits at over Rs 11,610 crore. 

Posted By: James Kuanal