Money & Banking

PMC depositors present 19-point charter of demands to RBI

Mumbai | Updated on October 22, 2019

An informal delegation of about 10 depositors of Punjab and Maharashtra Co-operative (PMC) Bank met senior Reserve Bank of India officials, including the Executive Director dealing with urban co-operative banks, to present a 19-point charter of demands, including seeking easing of withdrawal cap in case of health issues, marriage, education, payment of tax, society expenses, and revival package.

The RBI officials are believed to have told the delegation that they will revert on the demands raised by them in a week or so either through a press conference or press release. “It has been one month since the RBI put PMC Bank under directions. We are running here and there, demonstrating everyday to get back our hard-earned money. We told them it is high time they told us a time-frame for resolving the issues being faced by us. “The RBI said they would hold a press conference (in a week’s time). We have given them an ultimatum of October 30. We (16 lakh depositors) will not celebrate Diwali as a mark of protest,” said a delegation member.

Revival package

For revival package, the RBI should speak to the government to decide on the quantum of funds needed for revival/ merger with another bank, said the member.

The delegation also demanded that families of the six depositors, who died in the wake of their inability to withdraw money from the bank, should be given ₹25 lakh compensation each from any fund – contingency fund or relief fund.

According to hotelier Amardeep Tony Singh, the restrictions imposed by the RBI on withdrawal of depositors’ funds/ money in PMC Bank, have severely impacted them. Businesses are being forced to shut shop, educational and charitable institutions are finding it difficult to function, and ordinary citizens are unable to feed their families.

In addition to the financial loss, depositors are living under constant stress due to the uncertainty about whether they will get their money back.

PMC Bank was placed under directions by the RBI from the close of its business on September 23 on account of major financial irregularities, failure of internal control and systems of the bank, and wrong/under-reporting of its exposures under various off-site surveillance reports that came to its notice.

Published on October 22, 2019

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