PMC Bank: PIL on removing withdrawal restrictions listed in Delhi HC for November 1

Forum Gandhi Mumbai | Updated on October 31, 2019

PMC Bank was placed under Directions for six months by the RBI with effect from the close of its business on September 23, 2019. File Photo   -  BusinessLine

A Public Interest Litigation (PIL) seeking removal of restrictions on withdrawal from PMC bank is listed in the Delhi High Court (HC) on November 1.  

The PIL has been filed by Bejon Kumar Misra, an activist on the directions of the Supreme Court (SC). Shashank Deo Sudhi, the advocate representing Misra said, “The SC declined to hear PMC matter on 18.10.2019 and suggested to approach concerned High court, Hence petitioner had filed this PIL which is listed for admission.”

Also read: PMC Bank scam: Assets may be sold to pay depositors

In the PIL, Mishra has appealed to the HC to pass a direction to quash the notifications on withdrawal limits by the Reserve Bank of India for PMC bank’s depositors. Reserve Bank of India has put withdrawal limits for depositors of PMC Bank. According to the first notification by the RBI the withdrawal limit was capped at Rs 1000 in six months which has been gradually raised to was raised to Rs 40,000.

Also read: RBI enhances withdrawal limit for PMC customers to ₹40,000

The cap on withdrawal was put up after an alleged fraud of Rs 4,355 crore scam by Housing Development Infrastructure Limited (HDIL) which has 70 per cent of the loans of the total loan in PMC bank came to light. The Economic Offenses Wing (EOW) of the Mumbai Police has made several arrests in the said case including the promotors of HDIL and the ex-chairman and directors of PMC bank. 

In the said PIL which is listed for Friday, an appeal for issuance of an interim protective measures for insuring all the consumers whose money is blocked in PMC Co-operative bank branches of NCT of Delhi has been maded. Along with this, it has been appealed to issue guidelines to safeguard the banking and co-operative deposits and constitute a committee for looking into the complete affairs of working and their operation in all co-operative banks.

The PIL also urged to provide complete financial insurance as per the respective deposits of the depositors unlike existing insurance cover for Rs 100000/- only irrespective of any amount of deposits. Currently, the existing insurance cover for Rs 100000/- only irrespective of any amount of deposits. 

Published on October 31, 2019

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