Depositors hit out at RBI for failure

Mumbai: PMC Bank depositors have alleged failure on the part of the RBI to take preventive steps to secure their interests. The depositors informed the court that the PMC Bank was not the only bank to have shut down, yet the RBI never felt the need to put in place a mechanism to stop the misuse of money and protect depositors’ money. The court will hear the RBI’s arguments  Thursday.

A division bench of Justice S.C. Dharmadhikari and Justice R.I. Chagala was hearing the PILs and writ petitions filed by the PMC Bank depositors. Advocate Gayatri Singh argued before the court that there was nothing mentioned in the affidavit about when the money would be given to the depositors. She also alleged that one week before the PMC Bank shut down, a few people withdrew big amounts from it.

Advocate Satish Talekar, representing some investors, said, “As per the cooperative banks’ law, the RBI should protect the interests of depositors and monitor the functioning of these banks. Not returning investors’ money is certainly non-protection of investors’ interests.”

He added that since 2016, the RBI knew that HDIL was not repaying money to the banks but the central bank remained quiet.