Finance Minister Nirmala Sitharaman says authorities closely monitoring improvements at PMC Bank

By | October 15, 2019
Finance Minister Nirmala Sitharaman says authorities closely monitoring improvements at PMC Bank

Finance Minister Nirmala Sitharaman on Monday said she is closely tracking the changes at Punjab and Maharashtra Co-operative (PMC) Bank, along with the RBI Governor has assured that clients’ interest will be protected. The bank was put under’instructions’ by the Reserve Bank of India (RBI) last month due to poor financial wellbeing, whereas the central bank has restricted the deposit withdrawals at Rs 25,000.

‘The RBI governor has promised me that he will keep the attention of consumers in your mind, and at the first attempt resolve and solve it…I had discussion with RBI Governor this day and I am closely monitoring it,’ she said while addressing media after meeting minds of public sector banking .

PMC is in poor health allegedly due to its exposure to near-bankrupt realty participant HDIL, to which it’s totaled over 70 per cent of its Rs 9,000 crore in progress.

Government continues to be on its toes in terms of bringing the resources of those promoters (indulged in fraud) of this lender…procedure won’t suffer for want of sufficient assets that can finally help paying customers back. In fact my appeal to Governor this day was if you can find many resources, is there anyway RBI can expedite in terms of paying to customers that are genuinely affected,’ she explained. She said the government could look at raising deposit guarantee limitation from present $ 1 lakh. If it occurs it will be via Parliament, she added.

She further said that she’d discussion with the RBI Governor that should deposit guarantee of Rs 1 lakh could be published instantaneously. But the Senate advised the deposit guarantee is released after the bank is shut and and when it is a going concern,” she added.

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