Money & Banking

PMC Bank scam: Assets may be sold to pay depositors

Our Bureau Mumbai | Updated on October 31, 2019

Police personnel guarding a PMC Bank branch in Mumbai   -  Emmanual Yogini

The Reserve Bank of India (RBI) is understood to have taken initial steps to sell assets including properties owned by the Punjab and Maharashtra Cooperative Bank (PMC Bank) to pay the depositors. The central bank has asked the Mumbai Police to demerge the assets owned by the bank which will then be auctioned.

Earlier this month, Finance Minister Nirmala Sitharaman had said she would speak to RBI Governor Shaktikanta Das to consider expediting the withdrawal of funds by depositors of the PMC Bank.

Read more: PMC Bank: FM urges RBI Governor to expedite payments to worst affected customers

At present, PMC Bank, is under directions of RBI and depositors can withdraw only ₹ 40,000.

Also read: FM to ask RBI to ease withdrawal norms for PMC Bank depositors

In a bid to alleviate the problems being faced by the depositors of the crisis-hit PMC Bank, the All India Bank Depositors' Association (AIBDA) has suggested to the RBI an immediate action plan, including upping the deposit withdrawal cap to ₹1 lakh and creation of a special line of credit that can allow additional withdrawal up to ₹10 lakh for all eligible large depositors.

Related news: PMC Bank case: Depositors body seeks to raise withdrawal limit to ₹1 lakh

Published on October 31, 2019

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