Concerns of PMC Bank’s customers will be addressed: FM

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NEW DELHI: Assuring account holders of troubled Punjab and Maharashtra Co-operative (PMC) Bank of support, finance minister Nirmala Sitharaman on Saturday said that she has spoken to the Reserve Bank of India (RBI) governor, who assured that customers’ concerns will be taken on top priority.

The bank was put under “directions” by the RBI last month due to weak financial health, wherein the central bank has capped the deposit withdrawals at Rs 25,000.

PMC Bank scam: ED traces Wadhawans’ 2,100 acres of land worth Rs 3,500 crore

ED has traced around 2,100 acres of land controlled by HDIL and its promoter Rakesh Wadhawan and his son Sarang aka Sunny. These land parcels are located in seven different villages in the Vasai-Palghar belt. The land, believed to be worth about Rs 3,500 crore, will be attached by the ED. The Wadhawans along with their company obtained loans from the Punjab and Maharashtra Cooperative Bank fraudulently.

“Spoken to governor @RBI on the #PMCBank matter. He assured me that clients & their concerns will be kept on top priority. I wish to reiterate that @FinMinIndia will ensure that customers concerns are comprehensively addressed. We understand the justified worries of the customers,” she said in a tweet.

Sitharaman tweet 1 (1)

PMC is in bad health allegedly due to its exposure to near-bankrupt realty player HDIL, to which it has loaned over 70 per cent of its Rs 9,000 crore in advances.

Will speak to RBI governor on urgency, distress of PMC Bank depositors: Sitharaman

Union finance minister Nirmala Sitharaman on Thursday held a meeting with depositors of PMC Bank and stated that the RBI is taking action against the crisis-hit lender’s management. “I’ve told depositors that the RBI is looking into the matter,” she said. Sitharaman added that she will speak to RBI governor Shaktikanta Das on urgency and distress of depositors.

Earlier this week during a media interaction, she had said, “Finance ministry may have nothing to do with it (PMC Bank matter) directly because RBI is the regulator. But from my side, I’ve asked the secretaries of my ministry to work with rural development ministry and the urban development ministry to study in detail as to what is happening.”

Secretaries from the department of financial services and economic affairs will be meeting a deputy governor of RBI soon to look into the “shortcomings” of the functioning of multi-state cooperative banks and see if any amendments can be made to the laws, she had said.

PMC Bank scam: 2 HDIL directors held, Rs 3,500 crore assets frozen

Rakesh Wadhwan and his son Sarang Wadhwan, directors of Housing Development and Infrastructure Limited were arrested by Mumbai Police on Thursday in the Rs 4,355 cr Punjab and Maharashtra Cooperative Bank cheating case probe. Non-repayment of Rs 4,355 cr loan led to panic among the account holders. The police has also seized Rs 3,500 crore property of the company.

“They will discuss legislative steps needed to prevent such incidents from happening and empower the regulator better,” she had said.
The government will bring in a legislation to this effect in the winter session of Parliament, she had said.

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