PMC Bank: “Hardships Circular” Details Process for Those in Dire Need to Extend Withdrawal Limit
Moneylife Digital Team 18 October 2019
Recently, the Reserve Bank of India (RBI) had enhanced withdrawal limit to Rs40,000 from Rs25,000 for depositors of Punjab and Maharashtra Cooperative Bank Ltd. (PMC Bank). 
However, this amount might still not be sufficient for those who are facing hardships such as medical emergencies or senior citizens who are dependent on their savings in their sole PMC bank account. There is a separate provision from RBI for withdrawal of amounts in excess of the stipulated amount; but many are not aware of these provisions. 
Moneylife Foundation has been collecting documents from affected PMC bank account holders for the purposes of a writ petition. In the past 48 hrs, we have encountered a few cases where people were undergoing treatment for terminal illnesses such as cancer, the expenses for which were paid out of their savings in their PMC account. In such cases, the provisions of this hardships circular would prove to be beneficial, but unfortunately the public is not aware of its existence. 
This circular which can be accessed here states that if the customer requires payment in excess of the amount stipulated on the grounds of harship, RBI has advised PMC Bank officials to adopt a simple procedure. “Depositors approaching the Bank to withdraw deposits above the prescribed ceiling amount” should apply in a prescribed format, along with the “reason for the hardship payment - medical, marriage, livelihood of senior citizens and education.” This application has to be submitted along with documentary proof. 
If the application is being made for medical expenses for either self, spouse, children or parents, then the depositor needs to furnish, “for medical expenses of self, spouse, children or parents, the Depositor should furnish Doctor’s Certificate, Medical bills, name of the person for whom the withdrawal is asked for”.
If the application is being made for marriage of self, children, brother or sister, the depositor needs to submit “marriage invitation card, hall booking receipt, receipt for ornaments etc”.
For education related expenses of self or children, “estimate of fee receipt duly certified by the School or Institute” will be required. In the case of senior citizens, widows or persons suffering from disabilities, the Depositor should needs to submit “estimated monthly expenses, proof of Senior Citizenship, Doctor’s certificate of disability in case of disabled person”.
The circular also limits the amount a depositor can withdraw to Rs1 lakh for medical grounds and in the other cases to Rs50,000 from the date the directions are imposed till the bank is either taken under liquidation or the directions are withdrawn.
Those customers who are eligible as per the criteria mentioned in the circular should approach the respective branch for completing formalities. 
suneel kumar gupta
4 years ago
Thanx, very useful
vikas Jain
4 years ago
This information is surely valuable. Thanks ML.
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