Depositors of the crisis-hit lender who are facing hardships can approach the RBI-appointed administrator in order to seek withdrawal of amounts up to Rs 1 lakh, the central bank counsel Venkatesh Dhond told a division bench of the HC.
The Reserve Bank of India (RBI) on November 19 told the Bombay High Court that depositors of the Punjab and Maharashtra Cooperative (PMC) Bank can now approach the administrator in case of medical emergencies necessitating withdrawals of up to Rs 1 lakh, news agency PTI reported.
The 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”.
Depositors of the crisis-hit lender who are facing hardships can approach the RBI-appointed administrator in order to seek withdrawal of amounts up to Rs 1 lakh, the central bank counsel Venkatesh Dhond told a division bench of the HC. The curbs, the bank said, were necessary to safeguard the interests of the bank and its depositors, the affidavit stated.
The apex bank also stated that a large-scale wrongdoing has been found in the PMC bank.
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).(With inputs from PTI)LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.