For third time, RBI hikes withdrawals to Rs 40,000 at PMC Bank
Mumbai: For the third time since its punitive actions, the Reserve Bank on Monday increased withdrawal limits at the crippled cooperative PMC Bank to Rs 40,000 from the present Rs 25,000 per account holder.
The move follows the weekend assurance by finance minister Nirmala Sitharaman to urge the Reserve Bank to look into the woes of the depositors of the cooperative bank with urgency, after irate depositors met her.
Punjab & Maharashtra Cooperative Bank, which is among the top 10 urban cooperative banks, was placed under an RBI administrator on September 23 for six months due to massive under-reporting of dud loans. The regulator also capped deposit withdrawals first at Rs 1,000, which was subsequently increased to Rs 10,000 and Rs 25,000.
"The financial position of the bank has been substantially impaired due to fraud perpetrated on it by certain persons. As soon as the matter came to the notice of the Reserve Bank, action was taken in appointing an administrator and ensuring that the bank's available resources are protected and not misused or diverted," the RBI said.
In a press statement, the central bank also said the move to increase the withdrawal cap to Rs 40,000 has been taken "after reviewing the bank's liquidity position and its ability to pay its depositors".
With this move, about 77 percent of the depositors of the bank will be able to withdraw their entire account balance with the increase in the caps, it said.
The RBI said its administrator has appointed forensic auditors to look into the fraudulent transactions.
The administrator, along with a three-member RBI- appointed advisory committee, is working for speedier resolution of the various issues being faced by the bank in conducting its operations, the apex bank said.
It also said the city police's economic offences wing has started investigating the matter.
The police had earlier pegged the scam at nearly Rs 4,500 crore and has already made a slew of arrests in the case, including the promoters of realty company HDIL the Wadhwans, and also the bank's chief executive and managing director Joy Thomas and chairman Waryam Singh who are all behind the bars now.
The bank, over a long period of time, had given over Rs 6,500 crore in loans to HDIL, which is 73 percent of its total advances, and which has turned sour with a shift in the fortunes of the now bankrupt company.
Its total loans stand at Rs 8,880 crore and the deposits at over Rs 11,610 crore. There have been massive protests across city from the depositors following the RBI action.
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Zubeen Garg's drowning in Singapore highlights vessel operators' responsibility: legal experts
Singapore (PTI): The drowning of Indian singer-composer Zubeen Garg has brought the spotlight on rules and regulations that concern responsibilities of vessel operators when dealing with intoxicated passengers, according to a media report that cited legal experts.
A cultural icon in India’s northeastern region, 52-year-old Garg travelled to Singapore in September 2025 to perform at a live event. A day before his performance, he went on a yacht trip with a group of people. He drowned while swimming in the sea near Lazarus Island, which is a popular diving spot.
His death shook his home state Assam, where millions came out on the streets mourning. Later, police cases were registered against the organiser of the event, his manager and some others.
Nico Lee, managing director of the Triangle Legal law firm, told The Straits Times that Singapore has Maritime and Port Authority of Singapore (Port) Regulations under which there are provisions to debar drunk passengers.
The owner, agent or captain of the vessel must not allow persons under the influence of alcohol or drugs onboard if they are intoxicated to a point where they endanger safety of the vessel, its crew or any person in it.
“In terms of civil liability, it could be argued that a yacht captain is negligent, as he owes a prima facie duty of care to guests on board under general negligence principles,” Lee was quoted as saying by the newspaper.
The singer and his entourage of about 15 individuals were partying on a chartered vessel, which they had boarded at Marina at Keppel Bay.
A death certificate issued by the Singapore General Hospital listed his cause of death as drowning.
An autopsy report suggested that Garg had 333 mg of alcohol per 100 ml of blood in his system, which was four times the legal limit for driving in Singapore and is likely to have impacted his coordination.
Citing Garg’s case, Lee said the circumstances were serious, as the controller of the vessel knew that the guest was intoxicated. Also, he may not have understood or processed a safety briefing for all passengers.
“That combination makes reliance on an ordinary briefing inadequate. If intoxication reaches a level that endangers the safety of the vessel or persons on board, the person in charge should not permit boarding at all,” he said.
According to Lee, the vessel’s operators could also have assigned a crew member to directly supervise him or ensure that he received a one-to-one explanation when he was capable of understanding.
Part of the responsibility could be attributed to the guest if he chose to enter the water and ignore instructions or behave dangerously despite the yacht owner or charterer’s best efforts, Lee said.
Vanessa Sandhu from Clifford Law LLP told The Straits Times that a key question is whether the yacht captain or operator owed a “duty of care” to the passenger and, if so, whether a breach of that duty caused the death.
“A yacht captain and operator generally owe passengers a duty to take reasonable care for their safety while on board, including swimming or water activities. This may include providing safety equipment and issuing appropriate safety instructions,” the daily quoted Sandhu as saying.
“However, the standard of care is an objective one, based on what a reasonable captain or operator would have done in the circumstances. It is not an absolute obligation to prevent all harm,” she said.
During the coroner’s inquiry, the operators of the vessel had said that no one had forced the singer to consume alcohol or enter the water, and that the entire entourage was informed on the yacht about the necessity of wearing life jackets before going for a swim.
A coroner’s inquiry on March 25 ruled Garg’s death as accidental drowning. On April 1, the police said that investigations into the singer's death had concluded, with no evidence of foul play.
However, in Assam, where seven persons were arrested in connection with Garg’s case, and some of them charged with murder, the matter is being heard in the court. All the suspects have denied any wrongdoing.
