FM takes up PMC Bank customers’ issues with RBI Governor

NEW DELHI: Finance Minister Nirmala Sitharaman has raised the worries of the Punjab and Maharashtra Cooperative (PMC) Bank customers about their money with Reserve Bank of India (RBI) Governor Shaktikanta Das.

“Spoken to governor RBI on the PMC Bank 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”, the Finance Minister tweeted.

Sitharaman had earlier in the week met Punjab and Maharashtra Cooperative Bank depositors in Mumbai and assured them the cooperative bank laws could be changed, if required.

The RBI has also announced a new email-based reporting system for cooperative banks.

The RBI raised the withdrawal limit to Rs 25,000 per account for PMC Bank depositors. Last week, the banking sector regulator had raised the limit to Rs 10,000 from the initial Rs 1,000.

“With the above relaxation, more than 70% bank depositors will be able to withdraw their entire account balance,” RBI said.

The bank has come on regulatory radar after Housing Development & Infrastructure Ltd (HDIL) and it’s directors failed to repay Rs 4,355 crore loan taken from Punjab and Maharashtra Cooperative Bank, putting the bank under liquidity stress. This prompted the Reserve Bank of India to appoint an administrator for oversee business under restrictions.