New Delhi: The Reserve Bank of India (RBI) on Thursday increased the withdrawal limit from Rs 1000 to Rs 10,000, in a relief for Punjab and Maharashtra Cooperative (PMC) Bank customers.


On a preliminary assessment of Punjab and Maharashtra Cooperative Bank Ltd (Mumbai), RBI has decided to allow the depositors to withdraw a sum not exceeding ₹10,000 of the total balance held in every savings bank account or current account or any other deposit account, the RBI said in a statement.

It said that the other terms and conditions of the said directive shall remain unchanged.

This comes a day after the RBI barred the customers from withdrawing  more than ₹1,000 from their accounts.

Accordingly, depositors can now withdraw upto Rs 10,000, including Rs 1000 permitted earlier, of the total balance in every savings, current, or any other accounts for the next six months.

With the relaxation, it said more than 60 percent of the bank depositors would be able to withdraw their entire account balance.

The RBI said it had reviewed the position and allowed the relaxation to reduce the hardships of the depositors.

On Tuesday, in a sudden move, the RBI sparked panic among depositors after it barred the PMC Bank, Mumbai, from carrying out the majority of its routine business transactions for a period of six months. The restriction was imposed on the savings and current accounts or any deposit accounts.

The PMC Bank has been barred from granting, renewing and loans and advances, make any investments, accept fresh deposits, etc, without the prior written approval from RBI., the apex bank's Chief General Manager Yogesh Dayal had said.