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Last Updated : Dec 02, 2019 05:50 PM IST | Source: Moneycontrol.com

Nearly 78% PMC Bank customers can now withdraw entire deposits: Govt

Any depositor of PMC Bank can also invoke the Reserve Bank of India's (RBI's) 'hardship provisions' to withdraw up to Rs 1 lakh to manage any crises, medical emergencies, marriage etc., Sitharaman said in the Question Hour of the Lok Sabha.

PMC Bank crisis
PMC Bank crisis

Even though the Rs 50,000 cap on deposit withdrawal for scam-hit Punjab and Maharashtra Cooperative (PMC) Bank customers continues, nearly 78 percent depositors have been allowed to withdraw their entire deposits, Union Finance Minister Nirmala Sitharaman said in the Question Hour of the Lok Sabha on December 2.

Any depositor of PMC Bank can also invoke the Reserve Bank of India's (RBI's) 'hardship provisions' to withdraw up to Rs 1 lakh to manage any crises, medical emergencies, marriage etc., Sitharaman noted.

"Nearly 78 depositors are now allowed to withdraw their entire account balance. They are small depositors. With this, the concerns of all small depositors are taken care of," she said.

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She added that the money received from the auction of properties in the process of being seized from the promoters of PMC Bank will be used to repay depositors.

A metropolitan court had recently allowed the RBI- appointed administrator for PMC Bank to sell two aeroplanes and a yacht belonging to HDIL group promoters Rakesh Wadhawan and his son Sarang, the prime accused in the Rs 4,355-crore scam at the cooperative lender.

According to the Mumbai Police's Economic Offences Wing (EOW), the PMC Bank management allegedly concealed huge loan defaults by HDIL group firms.

Over 70 percent of the bank's advances went to HDIL group, which led to a huge crisis when the realty group defaulted on repayment, the EOW had said.

On September 24, the RBI had imposed operational curbs on PMC Bank. It has also appointed an administrator after alleged financial irregularities were detected.

With inputs from PTI

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First Published on Dec 2, 2019 01:30 pm
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