PMC Bank Crisis: RBI's Move on Withdrawal Limit Reduces Outstanding Deposits by Only 10%, Clampdown Continues
Months after the RBI enhanced the withdrawal limit to Rs 50,000 for the scam-hit PMC Bank, reports are coming that this move helped in reducing the outstanding deposits by only 10 percent only. As per to the estimate, the outstanding deposits of the PMC bank have reduced from around Rs 10,800 crore by November-end (2019) from around Rs 11,800 crore in September (2019).
Mumbai, January 3: Months after the Reserve Bank of India enhanced the withdrawal limit to Rs 50,000 for the scam-hit Punjab and Maharashtra Cooperative Bank Ltd (PMC Bank), reports are coming that this move helped in reducing the outstanding deposits by only 10 percent only. As per to the estimate, the outstanding deposits of the PMC bank have reduced from around Rs 10,800 crore by November-end (2019) from around Rs 11,800 crore in September (2019).
According to a report, published in the Business Today, after Rs 4,355-crore scam surfaced, RBI took control of the scam-hit PMC bank and imposed restrictions on the withdrawal limit for customers. Initially, the RBI imposed the restrictions till Rs 1,000, which was further increased till Rs 50,000 in the consecutive months. PMC Bank Scam: Economic Offences Wing of Mumbai Police Submits Chargesheet, Names Joy Thomas, Waryam Singh & 3 Others.
It is to be known that RBI has imposed several restrictions in the under its Section 35A act and would review the position in the next three months. Probability of a liquidation, revival, or a merger with another bank is quite likely. However, Maharashtra government had recently proposed a merger of the PMC bank with Maharashtra State Cooperative (MSC) Bank.
Considering the actions taken by the probing authority on the corruption cases, the economic offence wing of Mumbai Police had submitted a its chargesheet against five people, including -- former MD Joy Thomas and Sujit Arora. Also, former chairman of the bank Waryan Singh, and promoters of Housing Development and Infrastructure Ltd (HDIL) -- Rakesh and Sarang Wadhwan -- were featured in the chargesheet. All the chargesheet were filed in Esplanade Court.
Finance Minister Nirmala Sitharaman had in December announced in the Lok Sabha that 78 per cent of depositors of PMC bank were now allowed to withdraw their entire account balance. Meanwhile, EOW had seized properties of Thomas and Wadhawan brothers worth Rs 3,600 crores.
(The above story first appeared on LatestLY on Jan 03, 2020 04:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).