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PMC Bank scam: 78% depositors can withdraw entire amount, says Nirmala Sitharaman

The finance minister added that in case of marriages, medical emergencies, and other crisis situations, a depositor of the bank can withdraw up to Rs 1 lakh by invoking the 'hardship provisions' of the RBI

twitter-logoBusinessToday.In | December 2, 2019 | Updated 16:13 IST
PMC Bank scam: 78% depositors can withdraw entire amount, says Nirmala Sitharaman
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Union Finance Minister Nirmala Sitharaman on Monday said that around 78 per cent of PMC Bank's depositors are now allowed to withdraw their entire account balance even though the ceiling of Rs 50,000 on withdrawal continues. Additionally, Sitharaman in the Lok Sabha informed that the government has allowed the Reserve Bank of India (RBI) to auction PMC Bank promoters' attached properties to fast track payments to the troubled depositors.

During the Question Hour, she said, "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."

The finance minister added that in case of marriages, medical emergencies, and other crisis situations, a depositor of the bank can withdraw up to Rs 1 lakh by invoking the 'hardship provisions' of the RBI.

As per the Mumbai Police's Economic Offences Wing (EOW), more than 70 per cent of the bank's advances went to HDIL group that led to a huge crisis when the realty group defaulted on repayment.

The RBI, after following the detection of alleged financial irregularities against PMC bank, imposed operational curbs on the corporation (PMC) bank on 24 September.

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