Nirmala Sitharaman assures crisis-hit PMC Bank investors

Union Finance Minister Nirmala Sitharaman yesterday assured aggrieved investors of crisis-hit Punjab Maharashtra Co-operative - PMC Bank that she will speak to the Reserve Bank Governor on how the banking operations can be normalised at the earliest. The minister met a group of distressed customers of PMC bank in Mumbai yesterday afternoon.

 

Speaking to reporters after the meeting, Ms. Sitharaman said, RBI is doing whatever is necessary and as per law but she will still try to put forth the customers’ misery before the banking regulator.

The minister further informed that finance ministry is studying the issue in detail to find out what went amiss in case of PMC so as to avoid such cases in the



future.

Ms. Sitharaman said, secretaries from the department of financial services and economic affairs will be meeting a deputy governor of RBI to suggest amendments in necessary laws that can help in prevention of such incidents and to empower the regulator. She said that any necessary changes to law as suggested by this group will be introduced in the winter session of Parliament.

The Reserve Bank had imposed severe restrictions on Punjab Maharashtra Co-operative Bank last month due to its weak financials, sending a frenzy among depositors who are currently allowed to withdraw just 25000 rupees. The bank was in bad health allegedly due to its exposure to the near bankrupt realty player HDIL.