Rediff.com  » Business » Sitharaman assures angry PMC depositors of changes in law

Sitharaman assures angry PMC depositors of changes in law

October 10, 2019 14:16 IST

Finance Minister Nirmala Sitharaman on Thursday faced irate depositors of Punjab and Maharashtra Co-operative Bank, and promised to bring in legislative changes for upholding of their interests. 

IMAGE: Finance Minister Nirmala Sitharaman meets the depositors of Punjab and Maharashtra Co-operative Bank at the BJP office in Mumbai on October 10, 2019. Photograph: ANI / Twitter.

The depositors had gathered outside the Bharatiya Janata Party office in Mumbai ahead of Sitharaman's scheduled press interaction in the run-up to the October 21 Maharashtra assembly elections. 

 

The PMC Bank was put under "directions" by the Reserve Bank of India last month due to weak financial health, wherein the central bank has capped the deposit withdrawals at Rs 25,000. 

PMC is in bad health 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 advances. 

At the press interaction, Sitharaman said 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. 

"They will discuss legislative steps needed to prevent such incidents from happening and empower the regulator better," Sitharaman said. 

The BJP-led government will bring in a legislation to this effect in the winter session of Parliament, she said. 

The minister said she will speak to RBI Governor Shaktikanta Das about the interests of the depositors and convey their urgency and distress. 

She also told the irate depositors that the RBI was looking into the matter.

© Copyright 2019 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
SHARE THIS STORY