PMC Bank scam: Depositors stage protest in Mumbai

Mumbai: Scores of depositors of the scam-hit Punjab and Maharashtra Cooperative (PMC) Bank staged a protest here on Saturday demanding the removal of restriction on cash withdrawal imposed by the Reserve Bank of India (RBI), which is currently capped at Rs 40,000 for six months.

The protesters raised slogans and held up placards with slogans like ‘Save PMC, Save Us’.

“I have been a customer of this bank for the past 15 years. RBI officials during audit had given this bank A grade. What is our mistake in this? Ours is not black money. It is very difficult to run a household for six months with just Rs 40,000,” said Shardab Sheikh, a protester.

Manmohan Singh, another protester said that he was under great pressure to make payments.

“I recently bought a new house and have to pay the builder 1 lakh each month. How will I pay the amount…I am very worried. They should allow us to withdraw more cash,” he said.

Last month, the RBI restricted the activities of the PMC Bank for six months and asked it not to grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits after an alleged fraud of Rs. 4,355 crore scam came to light.

The organisation had initially capped the deposit withdrawal at Rs 10,000 but later raised it to Rs 40,000.

The Enforcement Directorate (ED) has seized and identified movable and immovable assets worth more than Rs 3,830 crore owned by Housing Development and Infrastructure Limited (HDIL) in connection with the case.