PMC Bank crisis: FM Sitharaman says 'FinMinIndia will ensure that customers concerns are comprehensively addressed'

Fulfilling her promise made with PMC Bank depositors in Mumbai, Finance Minister Nirmala Sitharaman has raised the worries of the Punjab and Maharashtra Cooperative (PMC) Bank customers about their money with Reserve Bank of India (RBI) Governor Shaktikanta Das. The FM had also assured the depositors that the cooperative bank laws could be changed, if required.

Nirmala Sitharaman today tweeted, "Spoken to governor RBI on the PMCBank matter. He assured me that clients & their concerns will be kept on top priority. I wish to reiterate that FinMinIndia will ensure that customers concerns are comprehensively addressed. We understand the justified worries of the customers". 

Earlier in the week, Sitharaman had met PMC Bank depositors in Mumbai and assured them the cooperative bank laws could be changed, if required. Notably, The RBI has also announced a new email-based reporting system for cooperative banks.

The RBI raised the withdrawal limit to Rs 25,000 per account for PMC Bank depositors. Last week, it had raised the limit to Rs 10,000 from the initial Rs 1,000. "With the above relaxation, more than 70 per cent bank depositors will be able to withdraw their entire account balance," RBI said.

Notably, Punjab and Maharashtra Cooperative has come on regulatory radar after Housing Development & Infrastructure Ltd (HDIL) and it`s directors failed to repay Rs 4,355 crore loan taken from PMC Bank, putting the bank under liquidity stress. This prompted the RBI to appoint an administrator for oversee business under restrictions.

The PMC Bank crisis has sparked renewed concerns about India's banking sector. PMC is one of India's top five co-operative lenders with more than 900,000 depositors.

Watch Zee Business Live TV

Earlier on Monday, the Mumbai Police had arrested Joy Thomas, former managing director of PMC Bank, which has been accused of creating fictitious accounts to hide loans. There are over two dozen co-operative banks under the RBI radar, but PMC Bank, with deposits of Rs 11,620 crore as of March 31, is so far the largest.