Delhi HC reminds RBI and Centre the plight of PMC account holders

Source :Sify
Author :Sify
Last Updated: Sat, May 30th, 2020, 17:24:41hrs

New Delhi: A bench of Delhi High Court Chief Justice DN Patel and Justice Prateek Jalan have reminded the Reserve Bank of India and Centre on the plights of account holders of Punjab Maharashtra Bank (PMC) bank.  

The court appraised the centre and RBI on the difficulties faced by the depositors of the scam-tainted bank with regards to moratorium on withdrawals during Covid-19 pandemic.  

The bench was responding to a petition been filed by Consumer rights activist, Bejon Kumar Misra, who had sought directions for RBI to ease out moratorium on withdrawal of depositors' money with PMC Bank in the wake of coronavirus.

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Misra, in his plea filed through advocate Shashank Deo Sudhi, had sought to allow withdrawals of at least insured amount of Rs five lakhs that could meet medical and urgent needs of depositors of PMC Bank during the pandemic.  

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After hearing all sides in the matter, the bench said,"We direct the concerned respondents to appreciate the difficulties raised by the applicant/petitioner with respect to moratorium on withdrawal and decide the same in accordance with law, rules, regulations and government policy applicable to the facts of the case."

The application was filed in Misra main's petition seeking removal of restrictions on cash withdrawals from PMC Bank. The main petition was to be heard on April 21, but due to the lockdown and limited functioning of the high court has been adjourned to June.

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A number of curbs have been placed upon deposit holders of PMC bank after the Rs 4,355 crore scam came to the fore in Sept'19. RBI curtailed withdrawals initially at Rs 1,000 which were subsequently hiked to Rs 50,000. The moratorium had been extended for another three months from March 23 to June 22, 2020.  

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