Finance Minister Nirmala Sitharaman has assured customers of Punjab and Maharashtra Co-operative Bank that their concerns will be "comprehensively addressed". In a tweet on Saturday, the minister stated that she has talked to RBI Governor Shaktikanta Das who asserted that the concerns of PMC Bank account holders will be kept on top priority.
"Spoken to governor @RBI on the #PMCBank matter. He assured me that clients & their concerns will be kept on top priority. I wish to reiterate that @FinMinIndia will ensure that customers concerns are comprehensively addressed. We understand the justified worries of the customers," Sitharaman said in her tweet.
Spoken to governor @RBI on the #PMCBank matter. He assured me that clients & their concerns will be kept on top priority. I wish to reiterate that @FinMinIndia will ensure that customers concerns are comprehensively addressed. We understand the justified worries of the customers.— Nirmala Sitharaman (@nsitharaman) October 12, 2019
The RBI had imposed operational restrictions on the Mumbai-based co-operative lender last month on grounds of weak financial health. The central bank has capped deposit withdrawals at Rs 25,000 crore, landing millions of customers in trouble.
Earlier this week, FM Sitharaman formed a panel, comprising of two secretaries of the finance ministry, to look into the PMC Bank case. The panel will also have one deputy governor-level official from the RBI at the meeting to take necessary legislative steps to prevent such things from happening in future and empower the regulator better. In the upcoming Winter Session, the government will bring in necessary regulation and amendments in this regard.
The PMC Bank fraud came to light after the RBI found irregularities at the bank and imposed operational restrictions on the lender. Former managing director of the bank, Joy Thomas, wrote a letter to RBI, detailing the chain of events which led to the bank's Rs 6,500 crore exposure to HDIL. This amount is four times greater than the regulatory cap or at least 73 per cent of PMC Bank's entire asset pool of Rs 8,880 crore.
Based on the Mumbai Police's FIR, the Enforcement Directorate has also registered an Enforcement Case Information Report against the erring officials.
HDIL promoters Rakesh Kumar Wadhawan and Sarang Wadhawan, as well as former Chairman Waryam Singh and Managing Director Joy Thomas of PMC Bank, are being interrogated by the police for more details about the case.