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Learn why RBI has given this right to PMC Bank in case of fraud

The Reserve Bank of India (RBI) has told the Delhi High Court that the bank has been empowered to approve such requests to avoid delays in the process of withdrawing depositors’ money from PMC Bank, which was hit by the scandal. The country’s central bank said in an affidavit filed in response to the High Court’s order that the RBI would have to make its own decision instead of waiving PMC Bank’s payment of Rs 5 lakh to depositors in an emergency. Required.

4,355 crore scams

A bench of Chief Justice DN Patel and Justice Pritik Jalan said that since the RBI had imposed withdrawal withdrawals on Punjab and Maharashtra Cooperative (PMC) banks, the central bank should have decided to allow repayments in difficult circumstances. Following the revelation of a Rs 4,355 crore scam involving PMC Bank, the RBI has imposed a number of restrictions, including withdrawal restrictions.

Petition to relax the withdrawal ban

The court made the remarks during the hearing of the appeal of consumer rights activist Bejan Kumar Mishra. The petition asks the RBI to direct the RBI to consider other necessary requirements related to education, marriage of PMC Bank depositors. Currently it is only approved for serious treatment conditions.

Read more: PMC Bank scam: HDIL sells Rs 200 crore scam: Court forms committee to sell assets

The petition was filed through Mishra’s lawyer Shashank Dev Sudhir. Mishra’s chief PIL has called on PMC Bank to direct the RBI to relax the ban on withdrawal during the coronavirus epidemic.

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