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78% PMC bank depositors can withdraw entire deposits: Sitharaman

The Finance Minister said that in case of medical emergencies, marriages and other crisis situations, a depositor of the PMC Bank can withdraw up to Rs 100,000

Press Trust of India  |  New Delhi 

Finance Minister Nirmala Sitharaman speaks to journalists after a cabinet meeting in Delhi (Photo: PTI)
Finance Minister Nirmala Sitharaman speaks to journalists in Delhi. (File Photo)

Nearly 78 per cent depositors of the scam-hit have been allowed to withdraw their entire deposits even though the ceiling of Rs 50,000 on withdrawal continues, Union Minister said in Lok Sabha on Monday.

The Minister said that in case of medical emergencies, marriages and other crisis situations, a depositor of the Maharashtra-based can withdraw upto Rs 100,000 by invoking the 'hardship provisions' of the

"Nearly 78 per cent 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 the Question Hour.

The minister added that 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 Rs 50,000 withdrawal ceiling for depositors continues but for scenarios like marriage, education, livelihood and other "hardships", the withdrawal limit is Rs 100,000.

According to the Mumbai Police's Economic Offences Wing (EOW), the 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 had on September 24 imposed operational curbs on PMC Bank and appointed an administrator following detection of alleged financial irregularities.

First Published: Mon, December 02 2019. 13:15 IST
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