The PIL seeks the full protection of over 15 lakh affected bank customers and 100 percent insurance cover
The Supreme Court has agreed to an urgent hearing on the public interest litigation filed in regards to the Punjab and Maharashtra Cooperative Bank case, as per a CNN-News18 report.The petitioner, identified as Bijon Mishra, has sought the full protection of over 15 lakh affected bank customers and 100 percent insurance cover over their savings with the institution, the channel added.
The RBI had issued directions to PMC Bank on September 23, restricting basic banking services like cash withdrawals. Initially, the limit was set at Rs 1,000 per depositor. The regulator also appointed an administrator and three-member advisory committee to oversee the bank’s operations after its board was superseded.
The multi-state cooperative bank came under fire for fraud and misreporting of bad loans. The lender was also found to have violated the RBI’s group exposure norms. Its exposure to the realty firm Housing Development & Infrastructure (HDIL) is being investigated by the authorities including the Economic Offences Wing.
Forensic Auditors, appointed by the bank’s administrator, are also looking into the related transactions, the RBI said.
“The Reserve Bank is closely monitoring the developments and shall continue to take necessary steps in the interest of the depositors of the bank,” the regulator said.
Last week, Finance Minister Nirmala Sitharaman met with the bank’s customers on her visit to Mumbai. She said she spoke to the RBI governor, who had assured that customers' concerns would be addressed as the top priority. The central bank's board that met in Chandigarh also discussed the existing regulatory framework of cooperative banks among other issues.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.