Delhi HC Issues Notice In Plea Seeking Direction To PMC Bank To Allow Its Depositors To Withdraw Upto ₹5 Lacs In Light of COVID19

Delhi High Court has issued notice in a plea seeking a direction to be issued to the Punjab & Maharashtra Cooperative Bank (PMC Bank) to allow its depositors to withdraw upto ₹5 lacs in light of medical emergencies caused by COVID19The Division Bench of Chief Justice DN Patel and Justice Prateek Jalan has issued notices to the PMC Bank, Reserve Bank of India, and the Central Government. The order has come in a PIL filed by Bejon Kumar Mishra highlighting the difficulties faced by senior citizens due to the moratorium imposed by RBI on the withdrawal of deposits from PMC Bank. The Petitioner had sought court's direction to the RBI to ease out the moratorium for withdrawal of deposited money of depositors from PMC Bank during the pandemic of COVID19. 'The situation has come to such a pass that the depositors are completely helpless in carrying out their day to day financial activities and becoming victims of avoidable debt and mortgage', the petition states. The Petitioner has demanded for a direction to be issued to the RBI for ensuring the withdrawal of at least the insured amount of Rs 500000/- immediately to cater to the medical and other urgent needs of depositors of PMC Bank during such health crisis.The Petitioner has argued that:'The hypocrisy of the lack of liquidity with the bank is evidenced by the fact that approximately more than eight crore of rupees are being spent on the upkeep and maintenance of the non-functioning PMC Bank branches. This implies that the respondents' bank has sufficient liquidity to bear the operational costs like rents, salary of employees and other office expenses but the depositors are struggling to withdraw their own deposited money.'It is further argued by the Petitioner that depositors of PMC Bank are under serious distress and discriminated under similar situation, without any relief and justice.In addition to this, the Petitioner has asked for an interim financial package for senior citizen depositors who are facing several health issues including various urgent needs in the interest of justice.

Delhi HC Issues Notice In Plea Seeking Direction To PMC Bank To Allow Its Depositors To Withdraw Upto ₹5 Lacs In Light of COVID19

Karan Tripathi

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