In an announcement, the Reserve Bank of India today extended restrictions on the Punjab and Maharashtra Co-operative Bank for a further six months, while also increasing the withdrawal limit to Rs 1,00,000.

“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,” the RBI said in its statement.

The RBI stated that they have been in continued talks with all the stakeholders involved and pointed out that owing to the extent of the negative net worth of the bank, and the need to recover bad loans, the resolution of the bank will take further deliberation.

“Further, on a review of the bank’s liquidity position, its ability to pay the depositors and with a view to mitigating the difficulties of the depositors during the prevailing COVID-19 situation, it has also been decided to further enhance the limit for withdrawal to Rs 1,00,000 per depositor, inclusive of Rs 50,000 allowed earlier,” the RBI added.

The beleaguered bank came under the RBI scanner in 2019 for a series of bad loans – amounting to Rs 4000 crore – given out to Housing Development and Infrastructure Limited (HDIL).

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