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September 27, 2020
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‘Withdrawal up to Rs 1 Lakh from PMC Bank in Medical Emergency’

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  • PMC depositors can withdraw Rs 1 lakh in a medical emergency
  • For this, they will have to contact the administrators appointed by the RBI
  • The Reserve Bank of India said this to the Bombay High Court on Tuesday.
  • The affidavit states that such restrictions on withdrawals are necessary to protect the interests of banks and depositors.

 

The depositors of the Punjab and Maharashtra Co-operative Bank surrounded by the scam have received a big relief. Depositors can contact an RBI-appointed administrator to withdraw up to Rs 1 lakh in case of a medical emergency.

PMC depositors can withdraw Rs 1 lakh in a medical emergency

RBI said this to the Bombay High Court on Tuesday. In its affidavit on petitions challenging the restrictions on withdrawal of money, the RBI mentioned a withdrawal limit of up to Rs 50,000 for ‘difficulties on other fronts’, including marriage, education, livelihoods.

Administrators will have to contact

RBI lawyer Venkatesh Dhondh, Justice S.K. C. Dharmadhikari and Justice R. I told the Chagla Division Bench that the Depressed Depositors can approach the Administrator appointed by the RBI and get permission to withdraw up to Rs 1 lakh. The affidavit states that such restrictions on withdrawals are necessary to protect the interests of banks and depositors.

Ban on the bank for six months

The RBI also said that large-scale irregularities have been found in the PMC bank. On September 23, the RBI imposed regulatory restrictions on PMC Bank for six months.

Next hearing on the case on 4 December

The Affidavit said, “To reduce the hassle of depositors, the RBI has made a system of withdrawing more than the limit fixed on the basis of merit in view of the difficulties faced on other fronts including treatment, marriage, education, livelihood. Up to Rs 1 lakh can be withdrawn on medical ground and Rs 50 thousand in other cases. However,  after considering the affidavit, the court fixed December 4 for the next hearing.

What is PMC bank scam?

Financial fraud was going on in Punjab and Maharashtra Cooperative (PMC) Bank for almost a decade. Investigating officials say the bank management, led by Joy Thomas, had opened thousands of dummy accounts to fund construction company HDIL. The game had been going on for almost 10 years. The regulator initially learned that Thomas and some of the management had together lent Rs 4,226 crore (73% of the bank’s total loan) to only one company, HDIL. Also, which has now gone bankrupt.

In such a situation, the insolvency of this bank was beaten and RBI stopped its functioning. He fixed the limit for the depositors to withdraw money. After this, it was revealed that the scam is not of 4,226 crores, but of 4,355 crores. However, it has now been revealed that the PMC bank loan scam is more than Rs 6500 crore.

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