Money & Banking

PMC Bank issue: Finance Minister to take up depositors’ plea with RBI

Our Bureau Mumbai | Updated on October 10, 2019 Published on October 10, 2019

Finance Minister Nirmala Sitharaman addressing a press conference at BJP office in Mumbai on October 10, 2019.   -  Paul Noronha

Finance Minister Nirmala Sitharaman meets the protesting customers of the scam-hit PMC Bank.

 

Finance Minister Nirmala Sitharaman on Thursday said she would speak to Reserve Bank of India Governor Shaktikanta Das to consider expediting the withdrawal of funds by depositors of Punjab and Maharashtra Cooperative Bank.

At present, PMC Bank, is under directions of RBI and depositors can withdraw only ₹ 25,000.

She said she could not say when the money will be withdrawn as it will depend on RBI and the administrator.

 

"I have spoken to RBI Governor several times on PMC Bank and will do it today again. This is process-driven and will have to be discussed between RBI and administrator, " she said.

Read also: How the PMC Bank scam was kept hidden for many years

Sitharaman, who is in Mumbai ahead of Maharashtra Assembly Elections, also met protesting customers of scam-hit PMC Bank.

She also announced that a committee would be set up with Secretaries of Department of Economic Affairs and Financial Services with Deputy Governor, RBI to study in detail what has happened and understand shortcomings and look at ways in which respective acts can be amended to avoid future instances like PMC Bank.

Read more: PMC Bank crisis - Statutory auditors’ role in forefront again

"I have asked Secretary DEA and Secretary DFS to study shortcomings and suggest legislative steps to prevent such crises and empower the regulator. If necessary, in Winter session of Parliament, will place the amendments," she said, adding the committee will also look at whether deposit insurance should be hiked from current ₹ 1 lakh.

Sitharaman said that RBI regulates multi-state cooperative banks. Rural multi-state cooperative banks are registered with the Ministry of Rural Development, and urban multi state cooperative banks are registered with Ministry or Urban Development.

Published on October 10, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.