Nearly a month after the RBI clamped down on the operations of scam-hit PMC Bank, the depositors say their woes have only worsened, with some unable to pay school fees of their wards, while others finding it difficult to meet medical expenses.

Many fear that they might lose their lifetime earnings deposited in savings accounts, or in the form of fixed deposits.

Businessmen like M A Chaudhary complained that they were unable to either pay salaries to their workers, nor pay taxes or even the electricity bills after the cheques issued by the PMC Bank bounced.

So far, three depositors have lost their lives, apparently due to the crisis.

Established in 1984 in Sion in central Mumbai, the bank now has branches in six states but most of them are concentrated in the metropolises of Mumbai and Delhi.

On September 24, the bank's Managing Director Joy Thomas sent an SMS to its depositors about the Reserve Bank of India imposing regulatory restrictions, capping the withdrawals up to Rs 1,000 for six months.

Since then, he has been arrested, along with the promoters of Housing Development Infrastructure Limited (HDIL) Rakesh and Sarang Wadhawan, in an alleged fraud case.