PMC Depositors can withdraw upto Rs 1 lakh for medical emergencies, RBI counsel tells HC

Last Updated: Tue, Nov 19, 2019 17:36 hrs
Angry customers of PMC Bank

Mumbai: Deposit holders with Punjab Maharashtra Co-operative Bank can withdraw upto Rs 1 lakh from their account during medical emergencies said the Reserve Bank of India to the Bombay High Court on Tuesday.

News agency PTI reported the development citing the RBI's counsel Venkatesh Dhond explaining a division bench of the High Court that deposit holders can approach the RBI-appointed administrator to seek withdrawals of up to Rs 1 lakh.

After the RBI's ceiling limit on withdrawals, several petitions have been filed challenging the curbs on withdrawals. The central bank mentioned the Rs 50,000 withdrawal ceiling for scenarios like marriage, education, livelihood and other "hardships".

The apex bank said that curbs were necessary to safeguard the interests of the bank and its depositors.

On September 23, the RBI had imposed regulatory restrictions on the PMC Bank for six months over alleged financial irregularities.

"To mitigate the hardship of the depositors, the RBI has enabled entertaining on merit any application for withdrawal beyond the stipulated amount on hardship grounds like medical treatment, marriage, education, livelihood and other hardships, subject to a ceiling of Rs 1 lakh on medical ground and Rs 50,000 in all other cases," the affidavit stated.

After examining the RBI's affidavit, the bench posted the petitions for further hearing on December 4.

The withdrawal limit for account holders was initially Rs 1,000 per customer for six months, which was later raised to Rs 10,000 and is presently at Rs 50,000.

The crisis at the bank is attributed to the loans allocated to realty firm the Housing Development Infrastructure Ltd (HDIL), without due diligence being carried out. These loans later turned into non-performing assets (NPAs).

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