Now, PMC Bank depositors stare at uncertain future

NEW DELHI/MUMBAI: Nearly a month after the RBI clamped down on the operations of scam-hit PMC Bank, the depositors say their woes have only worsened, with some unable to pay school fees of their wards, while others finding it difficult to meet medical expenses.

Many fear that they might

lose their lifetime earnings deposited in savings accounts, or in the form of fixed deposits.

Businessmen like M A Chaudhary complained that they were unable to either pay salaries to their workers, nor pay taxes or even the electricity bills after the cheques issued by the PMC Bank bounced.

So far, three depositors have

lost their lives, apparently due to the crisis.

Established in 1984 in Sion in central Mumbai, the bank now has branches in six states but most of them are concentrated in the metropolises of Mumbai and Delhi.

On September 24, the bank's Managing Director Joy Thomas sent an SMS to its depositors about the Reserve Bank of India imposing regulatory restrictions, capping the withdrawals up to Rs 1,000 for six months.

Since then, he has been arrested, along with the promoters of Housing Development Infrastructure Limited (HDIL) Rakesh and Sarang Wadhawan, in an alleged fraud case.

After protests from account holders, the RBI raised the amount to Rs 10,000 and then to Rs 40,000 earlier this month.

However, the depositors, who have deposited lakhs and in some cases even crores in the bank, said the amount is too

less even to meet the monthly expenses, .

Tek Chand (71), a retired government servant and a resident of Janakpuri in west Delhi, said his family has over Rs 18

lakh deposited in the Tilak Nagar branch of the bank.

His wife has to undergo dialysis which costs him Rs 10,000 per month and half his monthly pension goes into it.