Left Menu
Development News Edition

PMC Bank case: 'Depositors can approach RBI admin for emergency


PMC Bank case: 'Depositors can approach RBI admin for emergency
Image Credit: ANI

HIGHLIGHTS

  • RBI mentions the withdrawal ceiling at Rs 50,000 for scenarios like marriage, education, livelihood and "other hardships".
  • On September 23, the RBI had imposed regulatory restrictions on the PMC Bank for six months.

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.

In an affidavit filed in the HC in response to petitions challenging the fund withdrawal restrictions, the RBI has mentioned the withdrawal ceiling at Rs 50,000 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 largescale 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 one lakh on medical ground and Rs 50,000 in all other cases," the affidavit stated. The bench after perusing the affidavit posted the petitions for further hearing on December 4.

The withdrawal limit for account holders was initially Rs 1,000 per each customer for six months, which was later raised to Rs 10,000 and is now 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 scrutiny. These loans later turned into non-performing assets (NPAs).

The petitions were filed by persons claiming to be depositors and account-holders of the bank seeking withdrawal of restrictions imposed by the RBI. Meanwhile, lawyer of one of the petitioners, Pradnya Talekar, told the bench that depositors should not bear the brunt of wrongdoings done by senior officials of the PMC bank, and that the RBI cannot impose such withdrawal restrictions.

To this, the bench said the depositors cannot say that their rights are superior to that of the banks. "How can this court say that the action initiated by RBI is contrary to the public interest or the depositor's interest?" Justice Dharmadhikari asked.

While the bench was perusing the RBI affidavit, hundreds of PMC bank depositors gathered outside the HC building in south Mumbai and raised slogans against the apex bank in the afternoon. They were not allowed to enter the court premises by police personnel.

The Mumbai Police's Economic Offences Wing (EOW), which is probing the alleged Rs 4355-crore PMC bank scam, had arrested nine persons including four top bank officials and two promoters of HDIL --Rakesh and Sarang Wadhawan, apart from auditors. On Saturday, the EOW arrested one of the PMC directors Ranjeet Singh, son of former-BJP MLA Sardar Tara Singh.

The EOW suspects a nexus between some of the accused and the realty group HDIL, whose mammoth loan defaults are said to have caused a liquidity crisis at the bank, leading to the appointment of an administrator by the RBI and restrictions on withdrawal of funds. The EOW had earlier told a sessions court that prima facie a nexus between some of the accused and HDIL group companies has been made out by the investigators who suspected a "deep-rooted conspiracy".

Six people had died due to loss of money, it had said. Another investigator, the Enforcement Directorate (ED), had attached assets of the Wadhawans.

Over Rs, 6,500 crore of the bank's advances of Rs 9,000 crore were made to either HDIL or dummy companies affiliated to it, which have gone sour.

(With inputs from agencies.)


TRENDING

OPINION/BLOG/INTERVIEW

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

Videos

Latest News

Saudi projects higher 2020 budget deficit, cuts spending

Riyadh, Dec 9 AFP Saudi Arabia on Monday said its budget deficit for next year would widen as the worlds top oil exporter faces tumbling oil prices and production cuts. The kingdom projected a budget deficit of 50 billion for 2020, for the ...

Will never accept Rohingya refugees as citizens, asserts Home Minister Amit Shah inLok Sabha.

Will never accept Rohingya refugees as citizens, asserts Home Minister Amit Shah inLok Sabha....

Sena allied with NCP, Cong to keep BJP out of power: Fadnavis

BJP leader and former Maharashtra Chief Minister Devendra Fadnavis on Monday alleged the Shiv Senas alliance with the NCP and the Congress was a pre-planned move to keep his party out of power in the countrys richest state. Speaking to Mara...

UP: Gang involved in leaking CTET paper busted, 2 held

Two members of a gang involved in leaking question papers of the Central Teacher Eligibility Test have been arrested in Uttar Pradeshs Kanpur district, an official statement said on Monday. The Uttar Pradesh Special Task Force nabbed Dheera...

Give Feedback