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Around 1 lakh depositors of PMC bank are expected to get the benefit from the amendment to the DICGC Act.
It has been nearly two years since the collapse of Punjab and Maharashtra Cooperative Bank (PMC Bank) and the customers are still left in the lurch. The customers’ plight is increasing as they don’t have any clue about when they will get back their money parked in the distressed bank.
The depositors are waiting with hope on the withdrawal of more money from their accounts after the passage of the Deposit Insurance and Credit Guarantee Corporation (DICGC) Amendment Bill, 2021.
They also want clarity on how they will be repaid as there are plans for the formation of a small finance bank. As per the latest amendments to the DICGC Act, in the case of RBI imposing a moratorium on a bank, account holders will be eligible to get up to Rs 5 lakh within 90 days of the imposition. Close to 1 lakh depositors of the PMC Bank are expected to benefit from this new amendment.
High-value depositors face bigger issues
It is however being estimated that around 43,000 high-value depositors still won’t be able to withdraw their savings in entirety. These high-value depositors account for approximately 85 percent of the deposits of the PMC Bank and a majority of them are senior citizens. Many distressed depositors are planning to pay a visit to their nearest branch to know more about when they will be able to withdraw their money. This issue is being widely discussed in WhatsApp groups and many depositors have also taken to social media platforms like Twitter to raise their questions, according to a report in the Hindu Business Line.
Since its closing of business in September 2019, the PMC Bank has been placed under RBI’s ‘all-inclusive directions’ which has been extended until December 31, 2021. As of now, the current withdrawal limit of the bank has been capped at Rs 1 lakh. In June an “in-principle” approval was granted to Centrum Financial Services by the RBI to set up a small finance bank. Once it is floated, PMC Bank will be merged into it.
In May this year, the RBI had allowed withdrawal of Rs 5 lakh for the PMC bank customers for Covid-19 treatment.