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Punjab & Maharashtra Co-operative Bank Fraud | Report Scams

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courtBanking / Loan FraudMumbai, Maharashtra

Punjab & Maharashtra Co-operative Bank Fraud

The Punjab and Maharashtra Co-operative (PMC) Bank was a multi-state co-operative bank operating across several states including Maharashtra, Karnataka, Goa, Delhi, Madhya Pradesh, and Gujarat. In September 2019, the Reserve Bank of India (RBI) imposed strict operational and transactional restrictions on the bank due to major financial irregularities, initially limiting customer withdrawals to a very low amount before gradually raising the limit over time.

State

Maharashtra

First reported

September 2019

Last activity

2025

Estimated victims

16 lakh depositors

Amount alleged

₹6,500+ Cr (alleged)

Institution involved

Punjab & Maharashtra Co-operative Bank Limited

Key company involved

Housing Development and Infrastructure Limited (HDIL)

Agencies involved

Reserve Bank of India, Enforcement Directorate

Status

Merged with Unity Small Finance Bank Ltd.

The full story

Everything you need to know about this case, in one place.

Investigations revealed that a massive portion of the bank's loan book was extended to a single troubled realty company, Housing Development and Infrastructure Limited (HDIL). The bank's suspended managing director admitted to the heavy exposure and noted that regulatory rules had been violated for years. Out of an overall loan book of a significant scale, loans to the realty firm constituted a majority of the bank's total lending, sparking widespread panic and severe financial distress among depositors.

Authorities including the Enforcement Directorate (ED) took action by attaching shares belonging to the realty group. Additionally, a high court appointed a committee to oversee the sale of the realty firm's assets to help pay back affected depositors. The crisis eventually led to a formal resolution when PMC Bank was merged with Unity Small Finance Bank Ltd. under an official RBI circular.

Not yet reported: The exact total amount of the overall fraud is cited differently across reports, ranging between several thousand crores.

Where the case stands

The latest position in the reports we read.

PMC Bank has been officially merged into Unity Small Finance Bank Ltd., and its branches now function under the new entity while asset sales and recovery efforts continue.

Who was affected

Described in general terms; we do not name victims.

Bank depositors and account holders across multiple branches in Maharashtra and other states faced severe liquidity restrictions and limited access to their savings.

Timeline

Key dates as reported, oldest first.

23 September 2019The RBI imposed operational restrictions on PMC Bank and limited customer withdrawals to one thousand rupees.

26 September 2019The withdrawal limit was increased to ten thousand rupees.

5 November 2019The withdrawal limit was further raised to fifty thousand rupees.

19 June 2020The RBI doubled the withdrawal limit for depositors to one hundred thousand rupees.

25 January 2022PMC Bank was officially merged with Unity Small Finance Bank Ltd. per an RBI circular.

How the scam worked

The method described in the reports.

The bank allegedly extended a disproportionate amount of its total loans to a single realty company, violating regulatory norms.
The financial exposure to the realty firm was reportedly hidden or maintained in violation of Reserve Bank of India rules for several years.
When authorities uncovered the irregularities, strict withdrawal caps were placed on account holders, preventing them from accessing their funds normally.

Targeted by something similar?

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Sources and further reading

Optional. The full story is above; these are the original reports it was prepared from.

en.wikipedia.orgOriginal report Primary source / searchen.wikipedia.org New cheating case filed against ex-PMC Bank managing director | Mumbai news - Hindustan TimesHindustan Times · 11 Nov 2025

Prepared by Report Scams, with the help of AI, from the published reports listed above. Check those reports for the latest. Cases here describe allegations. An FIR, arrest or charge is not a finding of guilt. To report a mistake, or to ask for a correction or removal, write to our Grievance Officer. See also the Safe Posting policy.