Sitharaman  Promises Legislation To Uphold PMC Bank Depositors’ Interests
Depositors of Punjab and Maharashtra Cooperative bank display placards during a protest over the banks crisis, outside the Reserve Bank of India building, in Mumbai. (Source: PTI)

Sitharaman Promises Legislation To Uphold PMC Bank Depositors’ Interests


Finance Minister Nirmala Sitharaman today faced irate depositors of Punjab and Maharashtra Co-operative Bank and promised to bring in legislative changes to uphold their interests.

The depositors had gathered outside the Bharatiya Janata Party’s office in Mumbai ahead of Sitharaman’s scheduled press interaction in the run up to the Oct. 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 Housing Development & Infrastructure Ltd., to which it has loaned over 70 percent 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.”

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 interest of the depositors and convey their urgency and distress.

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

WATCH | Protesting PMC Bank Depositors Meet FM In Mumbai.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.