Depositors of the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank want immediate payment of 25 per cent of the amount that will remain in their account after the initial payment of up to ₹5 lakh and payment of the balance in three installments over three years.

The PMC Depositors Forum, in its suggestions to the RBI, has sought incorporation of the aforementioned clauses in the final scheme of amalgamation of PMC Bank with Unity Small Finance Bank.

As per RBI’s draft scheme of amalgamation, depositors will be paid their money over a stretched period of 2 to 10 years. The Forum said this clause is not in favour of the depositors and appears to be beneficial only to the transferee Bank (Unity SFB).

Chander Purswani, President of the Forum, emphasised that 30 to 40 per cent of the overall depositors are senior citizens, who face grave uncertainty on receiving their own money.

The Forum reasoned that since depositors with balances up to ₹5 lakh will be paid by Unity SFB from the funds support received from the Deposit Insurance and Credit Guarantee Corporation (DICGC), this will reduce its deposits.

Hence, the investments that have made towards maintenance of statutory liquidity ratio (SLR) and cash reserve ratio (CRR) on the aforementioned deposits will become surplus. These can be liquidated and paid to the depositors having balances over ₹5 lakh.

The Forum assessed the funds so released can be used to settle 25 per cent of the outstanding amount in the depositors account immediately. The balance 75 per cent of the money can be released in three equal installments over the next three years.

It also sought incorporation of a provision, whereby funds can be withdrawn for medical emergencies being faced by depositors on case-to-case basis.

The depositors want RBI to ensure that Unity SFB will not exit its business / amalgamate with any other bank unless and until each and every PMC Bank depositor is fully paid and settled.

The Forum wants continuation in payment of interest on deposits at the contracted interest rate even after March 31, 2021. The draft scheme says that interest on any of the interest-bearing deposits with the transferor bank shall not accrue after March 31, 2021.

Post the appointed date (when the amalgamation becomes effective), Unity SFB should pay the same rate of interest to the depositors of the erstwhile PMC Bank as it will pay to its new depositors, the Forum said.

Further, keeping in view the dependence of senior citizens on interest income, a provision needs to be incorporated in the final scheme so that the interest accrued can be withdrawn.

Since SME/Pvt Ltd Companies are closely held companies and similar to proprietorship firms, partnership firms and Hindu Undivided Families, the Forum sought their inclusion in the definition of retail depositors.

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