Mumbai: Observing that the crisis-hit Punjab & Maharashtra Cooperative (PMC) bank depositors are mere constituents, the Bombay High Court on Tuesday said the rights of the depositors do not supersede the power of the Reserve Bank of India to impose regulatory restrictions over a bank.
The observation was made even as the depositors told the court that they can’t be made to bear the brunt of the wrongdoings of the PMC bank’s senior officials.
A bench of Justices Satyaranjan Dharmadhikari and Riyaz Chagla was, meanwhile, informed by the RBI that depositors who need money in case of medical emergency may be allowed to withdraw Rs one lakh each.
This amount would be disbursed by the RBI-appointed administrator only after the depositors make a ‘genuine’ application highlighting their hardships.
Senior counsel Venkatesh Dhond, appearing for the RBI, further told the bench that in case of other exigencies like livelihood, marriage or school fees, depositors would be able to withdraw Rs 50,000.
While hearing the matter, Justice Dharmadhikari clarified that he would not pass any order against the RBI for lifting the restrictions on withdrawal.
“You (depositors) are mere constituents. You cannot say that your rights are superior to the rights and powers of the RBI,” Justice Dharmadhikari remarked.
Meanwhile, an advocate made a request that the RBI be directed to consider scenarios like marriage and educational fees on priority basis, too.
Justice Dharmadhikari, however, turned down the request. “We are not running a bank over here and thus we will not prioritise anything. When RBI has said it would look after the hardships then you should submit your applications,” he said.
