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78% depositors of PMC Bank can withdraw entire deposit: Sitharaman

She also said steps are being taken to seize the properties of the bank's promoters to auction them and repay the depositors

By PTI in New Delhi

  • Published 2.12.19, 2:47 PM
  • Updated 2.12.19, 2:47 PM
 Union minister Nirmala Sitharaman speaks in Lok Sabha during the winter session of Parliament, in New Delhi, Monday, December 2, 2019.
Union minister Nirmala Sitharaman speaks in Lok Sabha during the winter session of Parliament, in New Delhi, Monday, December 2, 2019. PTI

Nearly 78 per cent depositors of the scam-hit PMC Bank have been allowed to withdraw their entire deposits even though the ceiling of Rs 50,000 on withdrawal continues, Union finance minister Nirmala Sitharaman said 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-based PMC Bank can withdraw upto Rs 1 lakh by invoking the 'hardship provisions' of the Reserve Bank of India.

"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," she said during Question Hour.

The finance minister said steps are being taken to seize the properties of the bank's promoters to auction them and repay depositors with the money obtained.

Sitharaman said the Rs 50,000 withdrawal ceiling for depositors continues but for scenarios like marriage, education, livelihood and other "hardships", the withdrawal limit if Rs 1 lakh.

According to the Mumbai Police's Economic Offences 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.

Over 70 per cent of the bank's advances went to HDIL group, which led to a huge crisis when the realty group defaulted on repayment, the EOW had said.

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

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