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November 1, 2020
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Account holders give central bank time till October 30: PMC Bank

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The meeting of the protesting account holders of Punjab and Maharashtra Co-operative (PMC) bank with the Reserve Bank of India (RBI) is overdue to the huge financial crisis due to the scam. During the meeting, RBI said that the account holders’ money is safe and the governor of the central bank is monitoring the case himself. The RBI has said that it will inform the Central Government about the matter, as well as a press conference on October 27.

The account holders said after the meeting on Tuesday that they discussed 19 points with the RBI and have given the central bank time till October 30 to settle the case. RBI has set an upper limit of 40 thousand for withdrawing money from the bank for six months, due to which the problems of customers are increasing.

The condition is that people are not able to meet the expenses ranging from school fees to treatment of their children, having money in the account. Not only this, four bank account holders have lost their lives due to this crisis.

PMC Bank Account holders give central bank time till October 30

The customers of the bank have started fearing that their life-long earnings may be lost, which they have deposited in the bank as their savings account and FD. MA, a Mumbai based businessman Chaudhary says that due to bouncing checks issued by PMC Bank, he is neither able to pay salary to his employees nor to pay the electricity bill.

Bank managing director Joy Thomas sent an SMS to customers about the restrictions on the bank, stating that they could withdraw only one thousand rupees from their account in six months.

He then arrested along with the promoters of Housing Development and Infrastructure Ltd (HDIL), a scam company with the bank, Rakesh and Sarang Wadhawan in an alleged fraud case.

What is PMC bank scam?

Financial fraud was going on in Punjab and Maharashtra Cooperative (PMC) Bank for almost a decade. Investigating officials say that the bank management, led by Joy Thomas, had opened thousands of dummy accounts to fund construction company HDIL. The game went on for about 10 years. The regulator initially came to know that Thomas and some of the management had together given Rs 4,226 crore (73% of the bank’s total loan) to only one company, HDIL, which has now gone bankrupt.

In such a situation, the insolvency of this bank beaten and RBI stopped its functioning. He fixed the limit for the depositors to withdraw money. After this, it was revealed that the scam is not of 4,226 crores, but of 4,355 crores. It has now been revealed that the PMC bank loan scam is more than Rs 6500 crore.

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