Money & Banking

PMC depositors move Delhi HC, seek higher withdrawal limit for all emergencies

Forum Gandhi Mumbai | Updated on November 09, 2020

Depositors of the scam-hit Punjab and Maharashtra Co-operative Bank (PMC Bank) have filed a plea with the Delhi High Court seeking higher withdrawal limit for all financial emergencies.

In June this year, the RBI had announced that the withdrawal limit for PMC Bank account holders has been increased to ₹5 lakh but only after producing medical documents.

Claims of only 13 out of 300 applicants were accepted by the RBI under the stipulated ‘financial emergencies’. It has also pleaded for compensation for the families of over 60 depositors who lost their lives due to lack of availability of funds. The matter is set to be heard on November 10.

The depositors have prayed that higher withrawal limit should be allowed for “all financial emergencies arising out of the necessity from education expenses, marriage expenses, and other genuine financial needs so that depositors may withdraw the required amount to meet their expenses in the light Covid-19-battered economy, where the common depositors are heavily dependent on their deposited amount since all sources of incomes have dried in the present circumstances.”

Senior counsel Shashank Deo Sudhi said: “It’s been a year since the bank is in stress. With the Covid-19 pandemic, several people are out of jobs as well. Over 60 people have lost their due to lack of money.”

The PIL further claimed that the RBI, while imposing the restriction, has not comprehended the collateral circumstances, which may befall on the depositors of PMC. It further prayed that the court direct the RBI to appropriately compensate the families of deceased depositors who have lost their lives under the stressful financial situation, including the release of the total deposited amount to those families immediately without further delay.

PMC Bank was put under restriction on September 23, 2019. As of March 31, 2020, the bank’s total deposits stood at ₹10,727.12 crore and total advances at ₹4,472.78 crore. Gross NPA of the bank stood at ₹3,518.89 crore as of March-end.

Published on November 09, 2020

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