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Nirmala Sitharaman
National Politics

PMC bank account holders get assurance from Finance Minister Nirmala Sitharaman

PMC is in weak condition allegedly due to its exposure to the near-bankrupt realty player HDIL which has loaned over 70 per cent of its Rs 9,000 crore in advance

Mumbai: Today Finance Minister Nirmala Sitharaman faced the frustrated customers of Punjab and Maharashtra Co-operative Bank after depositors whose money is stuck protested outside the BJP office in Mumbai.

Nirmala Sitharaman assured the customer that she would talk to RBI Governor Shaktikanta Das about allowing PMC customers to withdraw their money and convey to him the urgency of the matter.

“Once again I shall talk to RBI governor and convey the sense of urgency and distress that the clients of PMC have expressed before me and I shall request him to expedite the clearing of or giving permission for withdrawal of their monies which are deposited,” she said.

The PMC Bank was put under “directions” by the Reserve Bank of India (RBI) last month due to weak financial condition, whereas the central bank has capped the deposit withdrawals at Rs 25,000 for the next six months.

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

Sitharaman said she also explained to PMC bank customers that RBI takes action in cases where malpractice is detected, and it is doing what is to be done by law.

The ministry of finance, Sitharaman said she has asked secretaries in her ministry to study in detail to find out what went amiss in order to formulate amendments to avoid such cases in the present and future.

The RBI had restricted withdrawals from PMC Bank on September 23, after it learned that the bank had been involved in financial irregularities and had also under-reported the loans it had doled out to real estate developer HDIL.

Initially, the transaction limit for PMC account holders was Rs 1,000, which was first increased to Rs 10,000, and is now Rs 25,000. From this, the bank is not being allowed to lend or accept fresh deposits for the next few months.

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