SPOKEN TO RBI GUV OVER PMC: FM

NEW DELHI: Assuring account holders of troubled Punjab and Maharashtra Cooperative Bank of support, Finance Minister Nirmala Sitharaman on Saturday said that she has spoken to the RBI governor, who assured that customers’ concerns will be taken on top priority.

The bank was put under “directions” by the Reserve Bank of India (RBI) last month due to weak financial health, wherein the central bank has capped the deposit withdrawals at Rs 25,000.

“Spoken to governor @RBI on the #PMCBANK matter. He assured me that clients & their concerns will be kept on top priority. I wish to reiterate that @Finminindia will ensure that customers concerns are comprehensively addressed. We understand the justified worries of the customers,” she said in a tweet.

PMC is in bad health allegedly due to its exposure to nearbankrupt realty player HDIL, to which it has loaned over 70 per cent of its Rs 9,000 crore in advances.

Earlier this week during a media interaction, she had said, ‘’Finance Ministry may have nothing to do with it (PMC bank matter) directly because RBI is the regulator. But from my side, I’ve asked the secretaries of my ministry to work with Rural Development Ministry and the Urban Development Ministry to study in detail as to what is happening”.

Secretaries from the department of financial services and economic affairs will be meeting a deputy governor of RBI soon to look into the “shortcomings” of the functioning of multi-state cooperative banks and see if any amendments can be made to the laws, she

Secretaries from the dept of financial services & economic affairs will be meeting a deputy governor of RBI, they will discuss legislative steps needed to prevent such incidents from happening & empower the regulator better, FM said

had said.

“They will discuss legislative steps needed to prevent such incidents from happening and empower the regulator better,” she had said.

The government will bring in a legislation to this effect in the winter session of Parliament, she had said.

Meanwhile, Maharashtra chief minister Devendra Fadnavis told depositors of the scam-hit Punjab and Maharashtra (PMC) Bank that he would discuss the issue of their distress with Prime Minister Narendra Modi when he meets the latter on October 13.

A group of PMC Bank customers met Fadnavis on Friday after an election rally he addressed here to campaign for BJP candidate and sitting MLA Sanjay Kelkar, who is contesting from Thane City constituency.

Aggrieved depositors put forth their woes to the CM, who gave them a patient hearing, but said he could not give them any assurance as the model code of conduct was in force.

Fadnavis said he would be meeting Modi on October 13, and he had already prepared a brief on the PMC Bank issue for the meeting.

“After the elections on October 21, we will follow up on this issue and ensure that the bank is bailed out at any cost. It will not meet the same fate as the other co-operative banks,” he said.

PMC Bank is facing a crisis after an alleged Rs 4,500 crore scam came to light last month. The RBI has capped withdrawals from the bank at Rs 1,000 and later increased it to Rs 25,000 following protests by depositors.

The bank had allegedly lent over 70 per cent of its Rs 9,000 crore in loans to near-bankrupt realty player HDIL.