In an attempt to allay fears of depositors and customers of Punjab & Maharashtra Cooperative Bank (PMC), its suspended managing director Joy Thomas has claimed that the lender holds enough liquidity to meet all liabilities, and every penny of the public is secure.
Asserting that all its loans are fully secured, Mr. Thomas stated that one large account – HDIL – was the sole reason for the present crisis that led to the regulatory action on Tuesday when Reserve Bank of India (RBI) superseded its management and placed it under an administrator for the next six months.
He said the bank has a cash liquidity of around ₹4,000 crore in the form of statutory liquidity ratio (SLR) and cash reserve ratio (CRR), while its liabilities are around ₹11,600 crore.
RBI raises withdrawal limit
In a relief to the customers of crisis-hit Punjab & Maharashtra Cooperative Bank (PMC), the Reserve Bank of India (RBI) on Thursday increased the cash withdrawal limit to ₹10,000 per account, which will help over 60 % customers of the crippled lender.
The RBI had on Tuesday imposed a slew of restrictions on the bank for six months, allowing withdrawal of only ₹1,000 for the bank’s depositors, leaving the customers worried.
“It has been decided to allow depositors to withdraw a sum not exceeding ₹10,000 (including the ₹1,000 already withdrawn) of the total balance held in every savings bank account or current account or any other deposit account,” the RBI said in a release.
With the above relaxation, more than 60% of the depositors of the bank will be able to withdraw their entire account balance.
RBI said the above relaxation has been granted with a view to reducing the hardship of depositors.