Nirmala Sitharaman on PMC Bank: Will speak to RBI governor on depositors’ distress; legislation soon

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Published: October 10, 2019 1:56:00 PM

Amid the ongoing PMC Bank issue, Finance Minister Nirmala Sitharaman on Thursday said that a sense of urgency displayed by customers will be conveyed to the RBI Governor Shaktikanta Das in a meeting scheduled later in the day.

India finance ministry, annual Budget for 2020-21 growth slowdown, india revenue collection, Finance Minister Nirmala Sitharaman, Department of Economic Affairs, budget 2020On September 23 evening, the RBI had put a slew of restrictions on the bank for six months.

Amid the ongoing Punjab & Maharashtra Cooperative (PMC) issue, Finance Minister Nirmala Sitharaman on Thursday said that a sense of urgency displayed by customers will be conveyed to the RBI Governor Shaktikanta Das in a meeting scheduled later in the day. It comes after Nirmala Sitharaman met the irate PMC Bank depositors outside the BJP office in Mumbai today. The RBI is taking action and doing what is required according to the law, she said in a press conference. The concerned secretaries of the ministry have also been asked to study in detail the shortcomings and look at ways, if necessary, in which the respective Acts need to be amended, Finance Minister also said. The government would amend the Acts if it helps to bring about better regulation of co-operative banks, she added. The amendment would be introduced in the winter session of Parliament to improve the governing of multi-state cooperative banks, she added.

On September 23 evening, the RBI had put a slew of restrictions on the bank for six months. The restrictions included curbs on fresh lending, accepting fresh deposits and investments, among others. The withdrawal limit for account holders was also kept at Rs 1,000 for six months, which was later raised to Rs 10,000. The regulator also dismissed the board and suspended Thomas. It appointed J B Bhoria as the administrator at the bank.

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Rakesh and Sarang Wadhawan, the promoters of Housing Development and Infrastructure Ltd (HDIL), along with bank’s former chairman Waryam Singh, were arrested over alleged irregularities at the Bank. The police custody of Rakesh and Sarang Wadhawan as well as Waryam Singh have been extended till 14 October.

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