PMC Bank Fraud: Management Seeks Undertaking from Staff that They Will Not Withdraw Deposits for 3 Years
Moneylife Digital Team 13 November 2019
On the very day that the Reserve Bank of India (RBI) has to file an affidavit in response to a notice by the Bombay High Court, the management of fraud-hit Punjab and Maharashtra Cooperative Bank (PMC Bank) has sent emails to staff depositors seeking a declaration that they will not withdraw their personal deposits with the bank for a period of three years, even if restrictions on withdrawal are lifted by the regulator. 
 
The email sent from the Bank's head office says, "...I/We undertake not to withdraw and to keep deposits with PMC Bank for 3 years even after the restrictions on the Bank are removed by Reserve Bank of India (RBI)." (See the image below)
 
 
The PMC Bank has been put under restrictions by the RBI since September after an alleged Rs4,355 crore scam came to light, following which the deposit withdrawal was initially capped at Rs1,000, causing panic and distress among depositors. The withdrawal limit has been raised in a staggered manner to Rs50,000.
 
Founded in 1984 by S Gurcharan Singh Kochhar, in a small room in Mumbai, the bank had now grown to a network of 137 branches in six states and ranked among the top 10 cooperative banks in the country.
Comments
gcmbinty
2 years ago
This demand of the PMC Bank is unjustified without any guarantee to the depositors that after three years the money would be returned as FD with market interest. The staff depositors or any other account holders must not sign on the dotted lines of the proposed
declaration seeking a declaration that they will not withdraw their personal deposits with the bank for a period of three years. If the RBI is willing to stand a guarantee to the security of the deposits?
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