Will speak to RBI Governor, Nirmala Sitharaman assures PMC bank depositors

The Finance Minister says a committee will look into the issue pertaining to cooperative banks.

Finance Minister Nirmala Sitharaman assured the depositors of Punjab and Maharashtra Cooperative Bank that she would once again raise the issue of their distress to the RBI governor on Wednesday. She also said a committee will be formed to look into issues pertaining to multi-state cooperative banks.

Ms. Sitharaman, who was in Mumbai to campaign for the BJP-Shiv Sena alliance for the upcoming Maharashtra Assembly elections was greeted by agitated depositors of Punjab and Maharashtra Bank. The Reserve Bank of India has imposed restrictions on withdrawal from the bank following a multi-crore scam involving the bank and HDIL promoters came to light.

“Even as I came in, there were a few of badly affected customers of PMC bank waiting to meet. So I did meet them to hear their problem,” Ms. Sitharaman told the media at the BJP headquarters in Mumbai.

Stating that the Finance Ministry has nothing to do with the RBI’s measure, Ms Sitharaman explained: “A multi state cooperative bank, like PMC Bank, are regulated by RBI. But rural cooperative banks registration is done by the rural development ministry. Similarly the urban cooperative banks are registered by the urban development ministry but are regulated by RBI.”

“I have explained to the affected customers this but also told them that this doesn’t mean the government of India is doing nothing about it.” Ms. Sitharaman said.

She also said she has directed the Department of Economic Affairs and the Banking Secretary to work together with urban and rural development ministries so that multi state cooperatives that also run banks to study in detail what’s happening and what are the shortcomings. An RBI nominee, at deputy governor level, will also participate. They will also look at what amendments are needed to better empower the RBI on this front, she said.

Ms. Sitharaman also said the government is ready to bring amendments, if needed, in the upcoming winter session of Parliament.

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Printable version | May 24, 2020 8:16:15 PM |

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