PMC Bank Received Over 1,200 Deposit Withdrawal Applications Since April 2020

PMC Bank Received Over 1,200 Deposit Withdrawal Applications Since April 2020

Several depositors of the Punjab and Maharashtra Co-Operative (PMC) Bank have reportedly sent over documents to withdraw deposits under medical hardship grounds, which also covers the coronavirus. 

The administrator of PMC Bank, A K Dixit said in a Delhi High Court affidavit that the bank has received 1,229 applications for withdrawal of deposits up to ₹5 lakh since April 16, 2020. The affidavit further said that these withdrawals were sought for the treatment of COVID-19. More specifically, the bank received 419 applications between March 15, 2021, and May 24, 2021. 

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Dixit went on to say that all applications have been processed and approved as per the directives provided by the Reserve Bank of India (RBI). 

The affidavit goes on to say that PMC Bank continues to be in a tricky financial position, adding that its liquidity hasn’t improved either. This consequently means PMC cannot increase withdrawal limits for its customers. 

Further, it’s imperative for PMC to maintain minimum liquidity if it is to be merged or taken over by another firm. Currently, the consortium consisting of Centrum Capital and BharatPe is rumoured to be on top of the list to takeover PMC Bank.

PMC has been under RBI directives for more than 20 months which has brought along significant challenges for its customers. While the withdrawal limit was upped from ₹50,000 to ₹1,00,000 in June last year, it was then upgraded to ₹5 lakh for COVID-19 treatment.   

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