PMC Bank case: Depositors can approach RBI admin for medical emergency withdrawals of up to Rs 1 lakh

Depositors of the crisis-hit Punjab and Maharashtra Cooperative (PMC) Bank can approach the Reserve Bank-appointed administrator for withdrawal up to Rs 1 lakh in case of medical emergencies, the RBI told the Bombay High Court on Tuesday.

According to Money Control, RBI filed an affidavit responding to various petitions that have challenged the curbs it has placed on withdrawals. The central bank mentioned the Rs 50,000 withdrawal ceiling for scenarios like marriage, education, livelihood and other “hardships”. RBI counsel Venkatesh Dhond told a division bench of Justices S C Dharmadhikari and R I Chagla that the depositors facing hardships can approach the RBI-appointed administrator and seek withdrawal up to Rs one lakh.

Such withdrawal restrictions were necessary to safeguard the interests of the bank and its depositors, the affidavit stated. The apex bank also stated that a largescale wrongdoing has been found in the PMC bank.

"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.

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

(With inputs from PTI)

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