The affidavit was filed in response to an application seeking release of Rs five lakh to PMC bank depositors during COVID-19 to help them address health issues.
The RBI also raised the withdrawal limit in the case of three other banks, namely, Kerala Mercantile Co-operative Bank Limited, Hindu Cooperative Bank Limited and Sri Guru Raghavendra Sahakara Bank Niyamitha.
The plea referred to the scam-hit Punjab and Maharashtra Cooperative (PMC) Bank Ltd and sought directions to the central government and the Reserve Bank of India (RBI) to amend the BRA to make it applicable on such financial institutions.
Auditors can at best blow the whistle after the horse has bolted, but it is for the management to disburse loans after extreme caution
Apart from PMC Bank, the fate following nine lenders still hangs in balance. The directions date back several years, with depositors' money locked in, mostly without any respite from RBI.
RBI's Officers' Co-op Credit Society Ltd has a fixed deposit of Rs 105 crore with the Mumbai-based bank, as per the report.
HDIL's one-time settlement offer of Rs 96.5 crore, drawn on PMC Bank, was accepted by Bank of India against dues of Rs 522.3 crore.
If you have an account with Punjab and Maharashtra Cooperative Bank, here's are some important things you should know.
The scene outside the PMC headquarters at the eastern suburb of Bhandup did not betray the fear among the tens of hundreds of depositors who rushed in, on hearing the news of their bank 'going belly up'.