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Last Updated : Nov 07, 2019 06:34 PM IST | Source: Moneycontrol.com

PMC Bank case: Govt may soon monetise bank collateral to pay off depositors, says report

The Finance Ministry and the Reserve Bank of India are waiting for a formal nod to begin the process.

The government might soon start monetising the Punjab and Maharashtra Cooperative (PMC) Bank's collateral to pay off depositors, sources told CNBC-TV18.

Government sources told CNBC-TV18 that initial investigation in the Punjab and Maharashtra Cooperative (PMC) Bank case indicates that the lender has enough collateral to pay off depositors. They said the government is hopeful that deposits in PMC Bank are safe.

Sufficient collateral is available with the bank, both in the form of land and property, the sources added.

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The Finance Ministry and the Reserve Bank of India are waiting for a formal nod to begin the process.

In a huge relief to its depositors, the Reserve Bank of India (RBI) on November 5 increased the withdrawal limit for customers of PMC Bank to Rs 50,000. The move is expected to allow 78 percent of the lender's depositors to withdraw their entire account balance.

Read | PMC Bank: RBI increases deposit withdrawal limit to Rs 50,000, reopens ATMs

The central bank also announced that customers would be able to make withdrawals within the relaxed limit of Rs 50,000 from the bank's own ATMs.

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First Published on Nov 6, 2019 10:13 pm
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