Bombay HC rejects petitions of institutional depositors in PMC-Unity merger
"The Bombay High Court has rejected petitions from over 225 institutional depositors who challenged the Reserve Bank of India's move to merge scam-hit PMC Bank with Unity Small Finance Bank. The institutions felt the payout plan was unfair since individuals with deposits under ₹15 lakh got their money back in full, while institutions are being paid back slowly and at a lower interest rate."
Court upholds RBI's merger plan, prioritizing regular depositors
This decision means the merger plan stays, aiming to protect regular depositors after PMC Bank's massive fraud and collapse in 2019.
The court said the scheme ensures everyone gets their principal back with some interest, prioritizing people's savings during a crisis.
Since the merger, about 84% of depositors have already withdrawn their funds, helping restore trust and stability for those affected by one of India's biggest banking scandals.