Money & Banking

Distressed PMC depositors hold protest at RBI

PTI New Delhi | Updated on November 20, 2019

PMC bank account holders display placards as they protest outside the RBI building over the bank's crisis, in New Delhi, Wednesday, November 20, 2019.   -  PTI

Distressed depositors of scam-hit PMC Bank on Wednesday held a day-long protest outside the RBI office in New Delhi, demanding their “hard earned” money be returned at the earliest.

A delegation of the depositors met a senior official of the Reserve Bank of India, who assured them efforts were on to address their problem.

Delhi resident Rajinder Singh, who says to have a deposit of about Rs 20 lakh in the bank, said that authorities should give them a time frame for refund of his money.

Another depositor Jagpreet Singh, having three accounts in the bank, said that most of the affected people were senior citizens who had put in their life savings in the Punjab and Maharashtra Cooperative Bank.

The affected depositors raised slogans against the Reserve Bank, alleging that the central bank did not do its job. They also alleged political connections behind the scam.

Statutory inspection of PMC by the RBI revealed large group exposure toward Housing Development and Infrastructure Limited (HDIL) Group companies to the tune of approximately Rs 6,226.01 crore (inclusive of interest accrued in the related accounts).

Out of total exposure of Rs 6,226.01 crore as of end-March, 2019 to the HDIL group, only Rs 439.58 crore was disclosed to the RBI and remaining Rs 5,786.43 crore remained undisclosed.

As on September 23, 2019 (date of imposition of RBI directions), total depositors of the bank were 9,15,775. However, as on November 5, 2019, with withdrawal limit being increased to Rs 50,000, almost 78 per cent of the depositors will be able to withdraw entire amount deposited with PMC bank, thereby addressing depositors interest, Parliament was informed on Tuesday.

Published on November 20, 2019

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like