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The Reserve Bank of India (RBI) on Thursday said that situation of Punjab & Maharashtra Co-Operative Bank (PMC) is being closely monitored. It said it has also given inputs to the Centre for making legislative changes relating to co-operative banks in the country.
“We increased the withdrawal limit . PMC’s situation is being closely monitored,” RBI Governor Shaktikanta Das told reporters in New Delhi after a meeting of Financial Stability and Development Council (FSDC). The meeting was presided by Finance Minister Nirmala Sitharaman and was attended by financial sector regulators (SEBI, PFRDA, IRDA besides RBI) and senior Finance Ministry officials.
PMC Bank was once considered among top urban cooperative banks in the country but it was placed under an RBI administrator on September 23 for six months due to massive under-reporting of dud loans. RBI had imposed withdrawal restrictions on account-holders after it found alleged irregularities to the tune of ₹4,355 crore due to diversion of money to infrastructure firm HDIL. On Tuesday, the apex bank enhanced the cash withdrawal limit to ₹50,000 per account, which was the fourth such increase since PMC Bank was placed under its direct control.
Das informed that the central bank is having discussion with various investigating agencies. “Two things have happened. Forensic audit is underway and an agency has been appointed to ascertain realisable value of the assets offered to PMC,” he said. Further he added that there was need to amend certain amendments in the relevant act which govern multi state co-operatives. “The Government is taking it forward in consultation with the RBI,” he said.
FSDC Meeting
Earlier, Das attended 21st meeting of FSDC under the chairmanship of the Finance Minister. The meeting reviewed the current global and domestic macro-economic situation and financial stability and vulnerability issues, including those concerning NBFCs and credit rating agencies.
The Council reviewed the action taken by the members on the decision taken by FSDC earlier and held discussions on the proposals submitted for further strengthening of the resolution framework and framework for cyber security of the financial sector. It also took note of the activities undertaken by the FSDC Sub-Committee chaired by RBI Governor and the initiatives taken by the various regulators in the financial sector.
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