RBI assures PMC Bank depositors their money is safe; account holders give ultimatum till 30 October: Report

The Reserve Bank of India (RBI) has assured the Punjab and Maharashtra Cooperative (PMC) Bank depositors that their money is safe.

The RBI told them that it will come up with a solution, and possibly convey it through a press conference or a press release between 25 and 27 October, said a depositor, according to a report in CNN-News18.

According to a CNN-News18 flash, RBI officials met a delegation of PMC depositors who have been protesting at Mumbai's Azad Maidan over the central bank's strict withdrawal limits that were imposed on the bank.

#NewsAlert – Delegation of PMC account holders returns to Azad Maidan after meeting with RBI officials. RBI officials have told us that our money is safe.

We discussed 19 points in details including medical expenses, marriage expenses, taxes, etc: PMC account holders. pic.twitter.com/Rl3nvmlJ4M

— News18 (@CNNnews18) October 22, 2019

A depositor told CNN-News18 that they had discussed 19 points in detail that included medical expenses, marriage expenses, taxes etc.

"We gave them an ultimatum till 30 October. None of us will celebrate Diwali," said the depositor.

Representational image. News18

The delegation also demanded Rs 25 lakh as compensation for the kin of those who have died due to the PMC crisis.

After the scam was unearthed in the bank, which has deposits of over Rs 11,000 crore, the Reserve Bank of India appointed an administrator over it, and capped its withdrawals at Rs 40,000 per account for six months.

Account-holders stage protest

On Tuesday, many scam-hit PMC Bank account holders staged a protest at Azad Maidan in Mumbai raising slogans and holding placards which read 'Black Diwali, Save Us' and 'Innocents are losing life'.

"16 lakh families for the past one month have been requesting the government to give our money back and help us. Six people have died and one girl has committed suicide but the government is not taking us seriously. The government can take decisions overnight. The decision to cut the Aarey forest was taken overnight. The RBI officials should also be punished as they were auditing regularly and this scam has been happening over a period of 10 months," a protestor told ANI.

Kurjot Gill, another account holder said: "We are fighting for financial freedom here. The government should address our issues. We want our money back."

Jaimal Singh Pawar sat on a hunger strike demanding help from the government.

"I am on a hunger strike and will not end it till the government extends help to us. My family had an account in this bank including me. I am unable to take out my own money. We are tired of protesting every day, we want a complete decision today," said Pawar.

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 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.

--With inputs from ANI