Lakhs of PMC bank depositors have been undergoing a lot of hardship and trauma ever since the bank was placed under RBI moratorium on September 22, 2019, which allowed a maximum of Rs 50,000 withdrawal and a further Rs 50,000 as hardship allowance.
Although interests earned on fixed deposits were credited every month into the savings bank account of depositors, they remained only on paper, as withdrawals were not permitted. Fixed deposits that had matured were automatically renewed for a further period with compounded interest, but also on paper.
Secondly, TDS from interests accrued during the financial year continues to be deducted and a statement of interests earned and TDS deducted sent to the Income Tax department under Form 26AS. Depositors are therefore subjected to a double whammy of paying income tax for income earned, but only on paper and which cannot be withdrawn.
It is not known how long such the situation will continue to prevail, and why the RBI continues to remain a mute spectator and insensitive to the plight of lakhs of depositors of the bank, even in these hard days of the pandemic and even after being pulled up by the Delhi High Court several times on several counts.
