Union Finance Minister Nirmala Sitharaman assured the depositors of the Punjab and Maharashtra Cooperative (PMC) Bank that the Finance Ministry will call on the Reserve Bank of India (RBI) to look into the matter on an urgent basis.

Nirmala Sitharaman was questioned when she arrived at the Mumbai BJP office to address the media on the performance of the Devendra Fadnavis led government ahead of the assembly elections in Maharashtra.

“I will have a word with RBI Governor in this regard and convey the urgency and distress expressed by the clients of PMC Bank here in Mumbai,” Sitharaman assured the depositors.

The Finance Minister reiterated that the ministry had nothing to do with the restrictions imposed on the PMC Bank after spotting some irregularities in the functioning of the Bank.

Nirmala Sitharaman said “Though the Finance Ministry is not involved with the actions taken by the regulator, I have asked the secretaries of my ministry to study the issue in detail.”

She added that a meeting will be convened along with the representatives from the RBI to understand the shortcomings in the operations of the bank and seek ways for early resolution of the issues.

The Finance Minister also added that the government is mulling on introducing a legislation or amending existing laws in this regard and possibly introduce the bill in the upcoming winter session of the parliament.

The PMC Bank was kept under the ‘directions’ of the RBI on account of its poor financial health where in the apex bank imposed a limit on deposit withdrawals at Rs. 25,000. This has created fear and panic among the depositors.

The PMC Bank had allegedly allocated over 70 percent of its advances worth 9,000 Crore to a bankrupt realtor HDIL.

 

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