Customers file complaint against PMC Bank's top officials

Several account holders of the crippled Punjab and Maharashtra Cooperative (PMC) Bank filed a joint police complaint on Thursday against the bank's chairman and its directors for alleged misappropriation of funds of the customers, a police officer said.

A delegation of account-holders went to Sion police station in central Mumbai and submitted the complaint against officials of the bank, on which the RBI has imposed operational restrictions, he said.

The delegation in its complaint alleged that at least 14 people, including the PMC Bank's chairman and all its directors, were involved in misappropriation of funds of the account holders, he said.

They requested the police to take proper action against those named in their complaint and confiscate their passports, so that they are not able to escape from the country, the official said.

They also sought an explanation from the bank's chairman and directors over misappropriation of funds of the customers, he said.

"We have receiveda written application from account holders of the PMC Bank. Further action will be taken after examining the complaint," the police officer said.

The Reserve Bank of India (RBI) on Tuesday imposed operational restrictions on the PMC Bank.

As per the RBI's directions, withdrawals have been capped at Rs 1,000 per account and the bank is not allowed to make any fresh loans.

"The issue of the directions by the Reserve Bank should not, per se, be construed as cancellation of its banking licence. The bank will continue to undertake banking business with restrictions till further notice/instructions," the RBI said in a notification.

The restrictions will be in force for six months, the RBI said.

According to PMC Bank's website, the lender was awarded the scheduled status in 2000 and has a presence in multiple states.

On Wednesday, the bank tried to allay fears of the depositors and customers, saying it has enough liquidity to meet all liabilities and every penny of the public is secure.

Asserting that all its loans are fully secured, the management admitted that one large account - HDIL- is the sole reason for the present crisis.