RBI extends restriction on Punjab and Maharashtra Bank for another six months

The Reserve Bank of India yesterday extended the restriction on Punjab and Maharashtra Bank for another six months, however it has increased the withdrawal limit for the bank’s depositors to Rs 1 lakh.

In a statement issued in Mumbai, the central bank said it has been closely monitoring the situation and was exploring to find a resolution to the crisis but lockdown in the wake of Covid 19 pandemic has affected the process.

It said



the bank is extending the restriction for another six months but the withdrawal limit of the depositor is enhanced by Rs 50,000 to Rs 1 lakh. The statement said with the relaxation in withdrawal limit, more than 84 per cent of the PMC Bank's depositors will be able to withdraw their entire account balance.  On 24 September 2019, the RBI had imposed restrictions on PMC Bank under Section 35A of the Banking Regulation Act.