RBI has approved the creation of a small finance bank, which will take over the scam-accused PMC Bank.
PMC Bank Scam: The Reserve Bank of India (RBI) has approved the creation of a small finance bank, which will take over the scam-accused PMC Bank. RBI gave this information during an ongoing hearing in the Delhi High Court on Monday. The High Court has given time to the RBI to inform about the development taking place in this matter. The next hearing of the case will be on August 20.
This company will acquire PMC Bank
Senior advocate Jayant Bhushan, appearing for RBI, before a bench of Justices DN Patel and Justice Jyoti Singh, said that the central bank has given Centrum Finance Services Ltd a small finance In-principle approval has been given to form the bank, which will take over the Punjab and Maharashtra Co-operative (PMC) Bank. This will give relief to those customers of the bank who are not able to withdraw their money deposited in the bank.
Relief to the customers of PMC Bank
The Delhi High Court was hearing a petition filed by consumer rights activist Bejon Kumar Mishra, seeking some relief to the customers of PMC Bank by the RBI. So that they can withdraw money for their needs like education, marriage and other works. Till now, they are allowed to withdraw money only in case of health emergency.
Mishra, in his Public Interest Litigation (PIL), has demanded from RBI to provide relief to the customers of PMC Bank during the current Corona epidemic. Mishra’s lawyer Shashank Sudhi told the court that in this case, the authorities have been given five times, but till now the money of the customers deposited in the bank has not been released. He has demanded from the court to give exemption to senior citizens to withdraw up to Rs 5 lakh.
Sympathetic to the problems being faced by customers: RBI
RBI had earlier said that it sympathizes with the problems being faced by customers. Every customer will have some or the other financial emergency. If everyone is allowed to withdraw money up to the limit of Rs 5 lakh, the bank will be in trouble and the depositors will not be able to get their money. RBI is trying to keep the bank running.
After the scam of Rs 4,355 crore came to light, the RBI had imposed some restrictions, including deposit withdrawal, on PMC Bank.
