PMC Bank scam: Bombay HC dismisses petitions seeking removal of withdrawal limits

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The PMC Bank has been put under restrictions by the RBI, after an alleged Rs 4,355 crore scam came to light following which the deposit withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors. (PTI Photo)

Calling the allegations against the Reserve Bank of India (RBI) as vague, the Bombay High Court Thursday dismissed the petitions filed by depositors of the Punjab and Maharashtra Cooperative Bank (PMC) seeking removal of the withdrawal limits set by the central bank.

The high court's decision comes weeks after depositors of the bank had taken out a march against the central bank outside the Bombay High Court premises seeking the removal of restrictions on the withdrawal amount.

The PMC Bank has been put under restrictions by the RBI, after an alleged Rs 4,355 crore scam came to light following which the deposit withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors.

Meanwhile, the Maharashtra government has suggested merger of the scam-hit Punjab and Maharashtra Cooperative (PMC) Bank with the MSC Bank in a bid a provide relief to depositors of the troubled lender, state minister Jayant Patil said on Thursday.

If the need be, the state government will speak to the Reserve Bank of India (RBI) on the issue of merger of the
Maharashtra State Cooperative (MSC) and PMC banks, he said. "I spoke to the MSC Bank chairman day before yesterday. We have suggested the MSC Bank to try to merge the PMC bank with it so that the poorest of its depositors get relief," Patil told reporters here.

The withrawal limit has been raised in staggered manner to Rs 50,000. At least eight depositors, who had high quantum of money stuck with the bank, died in the last couple of months, including one who committed suicide.

(With inputs from PTI)