Delhi HC Issues Notices To Center, RBI After PIL Seeks To Ensure That All PMC Bank Depositors Get Their Money Back
[ By Bobby Anthony ]The Delhi High Court has issued a notice to the central government as well as the Reserve Bank of India (RBI) in response to a Public Interest Litigation (PIL) filed in the Punjab & Maharashtra Co-operative (PMC) Bank Ltd scam case.The PIL which is scheduled to be heard on January 22 has sought the court's intervention to ensure that all bank account holders get their...
ToRead the Full Story, Subscribe to
Access the exclusive LEGAL ERAStories,Editorial and Expert Opinion
The Delhi High Court has issued a notice to the central government as well as the Reserve Bank of India (RBI) in response to a Public Interest Litigation (PIL) filed in the Punjab & Maharashtra Co-operative (PMC) Bank Ltd scam case.
The PIL which is scheduled to be heard on January 22 has sought the court's intervention to ensure that all bank account holders get their money back and asked for a legal provision to be put in place to make sure that such scams are prevented.
A bench of Chief Justice D N Patel and Justice C Hari Shankar issued the notice to the Finance Ministry, the Delhi government, RBI and the PMC bank directing them to indicate their stand on the plea which has sought 100% insurance cover for customers' money deposited in the bank.
Incidentally, the PMC Bank has been put under restrictions by the RBI after the scam was discovered. Deposit withdrawals have been capped at Rs 40,000 over a six-month period, causing panic and distress among depositors.
Customers of the bank are upset over these restrictions on the bank and have been appealing to the government to take steps to address the crisis situation.
Account holders of PMC Bank have already staged multiple protests in Mumbai, urging the government to remove restrictions on withdrawing their own money.
