During a hearing concerning the depositors of the PMC Bank, the Reserve Bank of India told the Delhi High Court that an in-principle approval had been given to Centrum Financial Services to set up a small finance bank(SFB). This SFB would then take over the Punjab & Maharashtra Cooperative Bank, the banking regulator informed a high court bench comprising of Justice DN Patel and Justice Jyoti Singh.
It may be noted that that RBI had put restrictions on the amount that depositors of the PMC bank could withdraw from their accounts after a scam of Rs 4,335 crore was unearthed in the bank’s loan book. The RBI has only granted an exemption to the restriction in cases of medical emergencies. The Delhi High court was hearing the case of activist Bejon Misra who requested the court to issue directions to the RBI to consider the needs of depositors of the PMC Bank like education, weddings, and dire finance condition as well.
On part of Bejon Mishra, advocate Shashank Sudhi said that the authorities had been given several dates but they had not released the money of depositors. He requested for loosening of the restrictions by allowing at least senior citizens to withdraw a maximum amount of Rs 5 Lakh.
The high court bench observed that exception could be given on the basis of medical and educational needs as per a Supreme Court order on the PMC Bank case. In response to the petitioner, the RBI had earlier said that while it sympathized with depositors, it was making efforts to keep the bank operational.
The two-judge bench, on Monday, ordered the RBI to file an affidavit and adjourned the case till August 20.
