Categories: Business

Delhi HC asks RBI, Center to explain how depositors of PMC Bank 'differently circumstanced' in comparison to Yes Bank


Delhi HC asks RBI, Center to explain how depositors of PMC Bank 'differently circumstanced' in comparison to Yes Bank

New Delhi. The Delhi High Court has questioned the Reserve Bank of India (RBI) and the central government over their separate dealings with depositors of Punjab and Maharashtra Co-operative Bank (PMC) and Yes Bank. The court has asked how the scam-affected PMC Bank customers are different from the customers of Yes Bank. It is noteworthy that in the case of Yes Bank, the government took immediate action and took steps to infuse capital into the bank among many investors including State Bank of India.

The court observed that according to the Central Government's March notification, the role of the central bank and the government was instrumental in the revival of Yes Bank. First the Yes Bank Limited Reorganization Plan 2020 was introduced and later it was also invested. The court was hearing a petition urging the Reserve Bank to issue a statement regarding the security and developments of deposits held in PMC Bank. Along with this, it has been asked to ensure that the depositors should be paid in full along with their interest.

Justice Rajiv Shakdhar was informed by the Center that the Government of India did not invest in the scam-affected Yes Bank. Even State Bank of India SBI has invested in the share capital of Yes Bank after the restructuring plan was approved. The Central Government's reply came on the previous question of the court, in which the court asked the government about its intention to provide any kind of help to PMC bank or to put any fund in it, as it allegedly did in the case of Yes Bank. . The court then issued an order on Thursday which became available on Friday.

The court said, 'In such a situation, the Reserve Bank of India filed an affidavit to show who inspired him to work in the' public interest 'to safeguard the interests of the depositors of Yes Bank and why the central government should explain why it approved the restructuring plan for it. Of. The court filed an additional affidavit to the RBI and the central government to bring the documents to the notice of the court to confirm its decision to save YES Bank and the reasons for sanctioning the restructuring plan. The court has given three weeks time for both. The next hearing on the matter will be on August 6.

This post was published on June 27, 2020 5:51 am

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