78% of PMC Bank depositors can withdraw full deposits: Government

NEW DELHI: Almost 78 percent of the depositors of the Bank of the Punjab and Maharashtra Cooperative (PMC), scammed, have been allowed to withdraw their full deposits even though the maximum limit of 50,000 rupees to withdrawal continues, he said. Union finance minister Nirmala Sitharaman in Lok Sabha on Monday.

Sitharaman also said in Lok Sabha that in case of medical emergencies, marriages and other crisis situations, a depositor of the Maharashtra base PMC Bank it can be withdrawn up to Rs 1 lakh by invoking the 'provisions on difficulties' of the RBI.

Almost 78 percent of depositors can now withdraw the entire balance from their account. They are small depositors. With this, the concerns of all small depositors are addressed, he said during question time.

The minister said steps are being taken to seize properties of promoters of the PMC Bank , auction such properties and repay depositors with the money obtained.

Sitharaman said the withdrawal limit of Rs 50,000 for depositors continues, but for scenarios such as marriage, education, livelihoods and other difficulties, the withdrawal limit is Rs 1 lakh.

According to the Mumbai Police's economic ofences wing (EOW), the PMC Bank management, allegedly in cahoots with a business family concealed from the banking regulators' scrutiny huge loan defaults by HDIL group firms.

More than 70 percent of the bank's advances went to the HDIL group, which led to a major crisis when the goods group did not pay, the EOW said.

The RBI had on 24 September imposed operational curbs on PMC Bank and appointed an administrator following detection of alleged financial irregularities.