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

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

PIL also sought direction to insure depositors' money depositors lying blocked in bank. Delhi HC listed  matter for furr 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 RBI put a cap on withdrawal limit.  A delegation of 10 depositors, who were protesting, met with RBI officials last Tuesday. delegation was assured by RBI assured depositors that ir money is safe. central bank has also assured that y would provide relief to depositors and anunce moves to tackle issue between October 25 and 27.

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What is PMC Bank Scam?

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

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