PMC Bank Fraud Case: Depositors Demand Justice, FM Sitharaman Says RBI Taking Action Against Management

Facing flak from several quarters on the PMC Bank fraud case, Finance Minister Nirmala Sitharaman on Thursday said that if amendments help in better regulation, the Centre would go ahead with the required legislative procedure.

Finance Minister Nirmala Sitharaman met the depositors of Punjab and Maharashtra Cooperative (PMC) Bank on Thursday. (Twitter)

New Delhi: Facing flak from several quarters on the PMC Bank fraud case, Finance Minister Nirmala Sitharaman on Thursday said that if amendments help in better regulation, the Centre would go ahead with the required legislative procedure. Speaking to reporters at the BJP office in Mumbai, Sitharaman said that she would meet the Reserve Bank of India (RBI) Governor this evening and convey the issues and urgency displayed by the PMC Bank customers. Sitharaman also met the depositors of Punjab and Maharashtra Cooperative (PMC) Bank on Thursday who were protesting at the BJP office in Nariman point of Mumbai when the finance minister arriver there earlier in the day. While addressing the media, Sitharaman said that the Finance Ministry may have nothing to do with PMC bank matters directly because RBI is the regulator. However, assuring depositors speedy resolution Sitharaman said the RBI is looking into the matter and will take appropriate action as needed. "From my side, I've asked the secretaries of my ministry to work with Rural Development Ministry and Urban Development Ministry to study in detail as to what is happening," she said while addressing the media. "I've asked the secretaries of the ministry to study in detail as to what is happening. Representatives of RBI will also be there to understand shortcomings, what happened, and also to, therefore, if necessary, look at the ways in which the respective Acts will have to be amended," Sitharaman said.

Smt @nsitharaman meets the customers of Punjab & Maharashtra Co-operative (PMC) Bank in Mumbai and listens to their concerns. pic.twitter.com/3whZHcaB8e

— NSitharamanOffice (@nsitharamanoffc) October 10, 2019

During the conversation with the PMC Bank depositors, the Finance Minister also informed them that the Finance Ministry is working with Rural Development Ministry. Meanwhile, a depositor among several protesting today in Mumbai was quoted by ANI as saying, “I don’t know what they’re doing, don’t care what they’re doing, I want my money back. I won’t be able to earn again whatever I’ve put in the bank.” The PMC Bank fraud came to light in late September, when the RBI barred the bank from carrying out the majority of its routine business transactions for a period of six months, sparking panic among the depositors and sending shock-waves in the city banking and business circles. Days, after fraud came to light, the now-suspended managing director of the bank Joy Thomas, in a letter to the RBI, acknowledged the wrongdoing, and said the bank even opened a number of dummy accounts to replace the stressed accounts held by Wadhawans-led Housing Development and Infrastructure Limited (HDIL). The Economic Offences Wing of Mumbai Police and the Enforcement Directorate (ED) are investigating the matter and have made few arrests and attached properties and assets so far. (with inputs from agencies)