PMC Crisis Result of Government's Wrong Economic Policies: NCP

Mumbai, September 24: Account-holders of the crisis-hit Punjab & Maharashtra Co-operative (PMC) Bank are in panic and the Reserve Bank of India and the government should ensure that they do not lose their money, the NCP said on Tuesday.

The party alleged that the crisis is a result of the BJP-led government's wrong economic policies. Citing many regulatory lapses, including massive under-reporting of non-performing assets, the RBI has put a slew of restrictions on PMC Bank for the next six months. RBI Restricts Activities of PMC Bank Due to Heightened Risks, Puts Rs 1,000 Limit on Withdrawals.

"It is the RBI and the government's responsibility to intervene and create trust in the minds of the people. They should take steps to ensure that people's money does not go down the drain," NCP chief spokesperson Nawab Malik said.

Another NCP leader, Dhananjay Munde, attributed the crisis to "wrong" economic policies pursued by the government.

"This is the ill-effect of the government's wrong economic policies. Account-holders are suffering because of the government's mistakes. Now every bank account-holder needs to be cautious," Munde said on Twitter.

The leader of Opposition in the Maharashtra Legislative Council sought to know if there is any guarantee that customers of other banks will not face a similar situation.

The major restrictions put by the RBI include capping withdrawals at Rs 1,000 per customer during the six-month period, and banning the bank from extending new loans. The city-based bank has around Rs 11,000 crore in public deposits.