PMC Bank customers can withdraw up to Rs1 lakh in medical emergencies: report

23 Oct 2019


In a big relief for the beleaguered account holders of the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank, the Reserve Bank of India (RBI) has raised the withdrawal limit for the bank’s accountholders to Rs1 lakh within a period of six months but with a rider. 

According to the norms for cash withdrawal announced by RBI, a PMC account holder can withdraw Rs60,000 over and above the Rs40,000 limit in case of a medical emergency.
Reports quoting BJP leader Kirit Somaiya said depositors can also withdraw Rs50,000 extra for marriage, education and expenses related to senior citizens, but within the overall withdrawal limit of Rs1 lakh. 
#PMCBank now Rs50,000 withdrawal (in addition to Rs40,000) allowed for medical/education urgency. Needy person has to apply to their branch, Bharatiya Janata Party Maharashtra unit vice-president Kirit Somaiya tweeted about the enhanced withdrawal limit on Wednesday.
RBI last week said the financial position of the bank has been substantially impaired due to fraud perpetrated on it by certain persons. As soon as the matter came to the notice of RB, action was taken in appointing an Administrator and ensuring that the bank’s available resources are protected and not misused or diverted.
Meanwhile, based on a complaint filed by the bank against its officials and borrowers associated with the fraud/financial irregularities in the bank and manipulation of its books of accounts, the Economic Offences Wing, Maharashtra Police has started its investigations into the matter. 
Further, Forensic Auditors have been appointed by the administrator of the bank to look into the related transactions. The administrator and the 3 member advisory committee appointed by the RBI are working for speedier resolution of the various issues being faced by the bank in conducting its operations.
RBI said it is closely monitoring the developments and will continue to take necessary steps in the interest of the depositors of the bank.
Initially, the withdrawal amount was limited to just Rs10,000 within a period of six months which was later increased to Rs25,000 and them to Rs40,000. However, the time frame of six months remains. A group of PMC Bank customers had also met RBI officials on Tuesday in Mumbai over the bank's fate.
At least, three PMC Bank customers have allegedly died due to financial scarcity and mental stress being faced by them due to the restrictions on withdrawing their money from the bank. 
The Economic Offences Wing (EOW) of the Mumbai Police has arrested former PMC Bank director Surjit Singh Arora, former bank chairman Waryam Singh, Housing Development Infrastructure Limited (HDIL) directors Rakesh Wadhawan and Sarang Wadhwan as well as Joy Thomas, the former managing director of PMC Bank, for their alleged involvement in the Rs4,500 crore scam.

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