PMC Bank: Delhi HC seeks RBI reply on PIL against withdrawal limit

Amid protests by scam-hit depositors of the Punjab and Maharashtra Cooperative Bank (PMC), the Delhi High Court on Friday asked the Centre, Reserve Bank of India and others involved in the case to file a reply to a Public Interest Litigation (PIL) seeking removal of withdrawal limit from the bank. 

The PIL also sought direction to insure the depositors' money depositors lying blocked in the bank. The Delhi HC listed the matter for further hearing on January 22, 2020.

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PMC depositors continue protest

Protests have been protesting outside RBI at Bandra-Kurla Complex, in Mumbai, seeking some sort of relief after 40 days since the RBI put a cap on the withdrawal limit.  A delegation of 10 depositors, who were protesting, met with RBI officials last Tuesday. The delegation was assured by the RBI assured the depositors that their money is safe. The central bank has also assured that they would provide relief to depositors and announce moves to tackle the issue between October 25 and 27.

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What is the PMC Bank Scam?

On September 21, the RBI took control of the bank for six-months. It had also capped withdrawals at ₹1,000 per account and the bank is not allowed to make any fresh loans for six months. The withdrawal limit has been increased to Rs. 40,000 as of Tuesday. After the takeover, PMC Bank had admitted that one large account-HDIL was the sole reason for the present crisis, as per PTI. Following this, the HDIL directors Sarang Wadhawan and Rakesh Kumar Wadhawan who had been arrested in connection with a fraud of over Rs 4,355 crores, have been sent to custody. According to the police, PMC Bank officials gave loans to HDIL between the year 2008 and August 2019 despite not paying the previous loans. The Wadhawans along with Waryam Singh- all HDIL promoters - and PMC bank's ex-chair Joy Thomas are being investigated. The Supreme Court too had refused to lift the RBI-sanctioned limits on withdrawal.

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