Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
Powered by cricketnext logo
News18 » Business
3-min read

PMC Case: Depositors Can Approach RBI Admin for Emergency Withdrawals, HC Told

Such withdrawal restrictions were necessary to safeguard the interests of the bank and its depositors, the RBI said in an affidavit filed in the HC.

PTI

Updated:November 19, 2019, 10:42 PM IST
facebookTwitter Pocket whatsapp
PMC Case: Depositors Can Approach RBI Admin for Emergency Withdrawals, HC Told
Image credit: News18 Creative/Mir Suhail

Mumbai: 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 SC Dharmadhikari and RI Chagla that the depositors facing hardships can approach the RBI-appointed administrator and seek withdrawal up to Rs 1 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 larges-cale 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 bank's. "How can this court say that the action initiated by RBI is contrary to 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 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 Rajneet 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 appointment of 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.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
Yes Bank 42.80 -15.33
SBI 312.80 -0.19
Indiabulls Hsg 268.35 -0.50
TCS 2,041.90 1.44
Reliance 1,562.40 0.03
Company Price Change %Gain
Yes Bank 42.80 -15.33
Reliance 1,562.60 0.03
Indiabulls Hsg 268.20 -0.32
SBI 312.70 -0.24
HDFC 2,322.05 1.19
Top Gainers
Company Price Change %Gain
GAIL 117.30 5.63
Zee Entertain 283.45 4.61
NTPC 113.00 2.73
IOC 125.55 2.45
ONGC 128.00 2.24
Company Price Change %Gain
NTPC 113.00 2.77
ONGC 128.00 2.28
Tech Mahindra 759.95 1.97
Kotak Mahindra 1,686.05 1.62
TCS 2,041.20 1.43
Top Losers
Company Price Change %Gain
Yes Bank 42.80 -15.33
Vedanta 138.50 -1.67
Hero Motocorp 2,296.30 -1.45
Hindalco 196.60 -1.26
Larsen 1,264.30 -1.15
Company Price Change %Gain
Yes Bank 42.80 -15.33
Vedanta 138.60 -1.63
Hero Motocorp 2,296.90 -1.44
Larsen 1,263.60 -1.21
Bharti Airtel 441.80 -1.17

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results