Appreciate difficulties of PMC Bank depositors on moratorium on withdrawals: HC to Centre, RBI

Activist Bejon Kumar Misra filed the petition seeking directions to RBI to ease out the moratorium for withdrawal of deposited money of depositors from PMC Bank during the pandemic

New Delhi: The Delhi High court has asked Centre and Reserve Bank of India (RBI) to appreciate the difficulties faced by Punjab and Maharashtra Bank Cooperative Bank (PMC) depositors with respect to moratorium on withdrawals and decide the same in accordance with law, rules, regulations and government policy applicable to the facts of the case.

The order comes on a plea seeking directions to RBI and other respondents to ease out the moratorium for withdrawal of deposited money of depositors from PMC Bank during the pandemic.

“In view of this limited submission, we direct the concerned respondents to appreciate the difficulties raised by the applicant/petitioner with respect to moratorium on withdrawal and decide the same in accordance with law, rules, regulations and Government policy applicable to the facts of the case," the HC order reads.

“Upon receipt of any representation from any individual or group of depositors in this regard, the decision shall be taken by the concerned respondent authority within a period of four weeks," the order further added.

“...respondents are adopting double standard in dealing with the depositors of PMC Bank as depositors of PMC bank has been still waiting for some financial relief from the respondents, by contrast, the depositors of YES Bank has been rescued and put on the growth path swiftly within month of being put under moratorium. However, the depositors of PMC Bank are under serious distress and discriminated under similar situation, without any relief and justice," the plea by activist Bejon Kumar Mishra reads.

The plea filed by advocate Shashank Deo Sudhi had also sought for directions to ensure the withdrawal of at least the insured amount of ₹5 lakhs immediately to cater to the medical and other urgent needs of depositors of PMC Bank during such health crisis

The application was filed in Misra main's petition seeking removal of restrictions on cash withdrawals from PMC Bank.

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