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Delhi High Court seeks response from PMC on withdrawal limits for depositors

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Delhi High Court seeks response from PMC on withdrawal limits for depositors

New Delhi, Sep 27 (PTI) The Delhi High Court has given two weeks time to Punjab and Maharashtra Cooperative (PMC) Bank depositors to file affidavits regarding withdrawal limits. Further, the court has said that the bank administrator should devise a procedure for applications for release of deposits.

The court has suggested that the administrators of PMC Bank can use technology to make arrangements for the same. In this, the process of scrutiny of applications should be completed in 48 hours to solve the problems of the depositors.

A bench of Justices Rajiv Shakdher and Talwant Singh asked the Reserve Bank to give a timeline for setting up of Small Finance Banks (SFBs) in which the troubled bank is to be merged, on an appeal by consumer rights activist Bejon Kumar Mishra. The petition has sought release of emergency fund to meet the financial needs of the depositors.

Senior advocate Jayant Bhushan, appearing for the Reserve Bank, submitted that once the SFB is constituted, there is a possibility that the PMC will be merged with it. This will solve most of the problems being faced by the depositors.

Petitioner’s counsel Shashank Dev Sudhi said that there should be a definite time frame in this matter as the depositors are suffering a lot due to not being allowed to withdraw their money.

After the scam of Rs 4,355 crore in PMC Bank came to light, the Reserve Bank had imposed many more curbs including withdrawal. The next hearing of the matter will be on October 27.

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