New Delhi: The Reserve Bank of India (RBI) in the Delhi High Court on Friday said that to avoid delay in the process of withdrawing depositors' money from the PMC bank, which was in the grip of the scam, the bank was empowered to approve such requests. The country's central bank has given this statement in an affidavit filed in response to the High Court's directive that RBI should take its own decision in return for exempting PMC bank from paying depositors Rs 5 lakh in an emergency. 

A bench of Chief Justice DN Patel and Justice Prateek Jalan had said that since the RBI has imposed withdrawal restrictions on the Punjab and Maharashtra Co-operative (PMC) bank, the central bank should have taken a decision on allowing payments in difficult circumstances. After the Rs 4,355 crore scam related to PMC Bank came to light, RBI has imposed several restrictions including limiting withdrawals.

The court made this remark while hearing a petition by consumer rights activist Bejon Kumar Mishra. The petition urges the RBI to direct it to consider other essential needs of PMC bank depositors such as education, weddings. Currently, it is allowed only in serious medical condition.

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