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PMC Bank: Congress says crisis reminds people of demonetisation

PMC Bank crisis: The Congress spokesperson said that PMC Bank's collapse and RBI's restriction on withdrawal has brought back the horrors of demonetisation for PMC Bank customers.

twitter-logoBusinessToday.In | September 27, 2019 | Updated 18:42 IST
PMC Bank: Congress says crisis reminds people of demonetisation
PMC Bank crisis

The Congress party has slammed the ruling Bharatiya Janata Party for the Punjab and Maharashtra Co-operative Bank (PMC) crisis. The party said that the crisis has reminded people of demonetisation declared by Modi government in its first tenure.

Congress also said that the directors are a flight risk like PNB scam accused Mehul Choksi. "One of the Directors has a ruling BJP link, government should register FIR against them as they may also flee to countries like Antigua," said spokesperson Gaurav Vallabh while addressing media.

Vallabh stated that one of the directors has a direct link with BJP as per bank records. Rajneet Singh, who is one of the directors is the son of four-time BJP MLA Sardar Tara Singh from Mulund. "There are others as well with indirect links to the BJP," he alleged. "They are a flight risk like Mehul Choksi, government should register FIR against them," he demanded.

The Congress spokesperson said that PMC Bank's collapse and RBI's restriction on withdrawal has brought back the horrors of demonetisation for PMC Bank customers. "This is demo 2.0 by the Modi government as depositors are facing similar problems for no fault of theirs," he added.

"RBI should explain how all this happened. The bank has Rs 11 thousand crore of deposits of common man," said Vallabh. "There are FDs of other smaller cooperative banks which may also default, there will be a domino effect in other banks," he added. "Why isn't the Finance Minister briefing about PMC collapse, we demand that the withdrawal limits be removed soonest to give relief to depositors," he said further.

RBI had imposed a restriction on PMC Bank, allowing customers to only withdraw Rs 1,000 from their accounts. Following police complaints and protestation by the customers, RBI increased the withdrawal limit to Rs 10,000.

Also read: PMC Bank: RBI increases withdrawal limit to Rs 10,000 from Rs 1,000

Also read: PMC Bank: Customers file police complaint against chairman, directors for misappropriation of funds

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Tags: PMC Bank | RBI
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