Protests Led RBI to Raise Bank’s Withdrawal Limit

Heavy protests by bank customers have led the Reserve Bank of India to modify its original restrictions placed on a cooperative bank with 137 branches across India. The central bank had limited customer withdrawals to only 1,000 rupees (approximately $14) per account for six months.

Also read: Panic at 137 Bank Branches as RBI Limits Withdrawals to ₹1,000

Raising Withdrawal Limit

India’s central bank has issued another circular regarding Mumbai-based Punjab and Maharashtra Cooperative Bank (PMC Bank) Ltd. The first one, announced on Sept. 24, puts PMC Bank under regulatory restrictions, including limiting customer withdrawals to 1,000 rupees (~$14) per account for six months. As customers protested heavily at PMC Bank branches, the RBI responded by issuing a follow-up circular to relax the imposed withdrawal limit. The new circular, dated Sept. 26, states that the central bank “has decided, in the interest of depositors, to review the [previous]…