Govt Waiting for Clarity in PMC Bank Issue: Sitharaman

Govt Waiting for Clarity in PMC Bank Issue: Sitharaman

Finance Minister Nirmala Sitharaman on Thursday responded to the ongoing crisis in PMC Bank, saying that the government is watching the developments there and will see what best can be done for the affected people.

"Government will wait till there is more clarity in the matter.

"At this stage, the RBI is handling it. Let a comprehensive picture emerge, post that the government will have to see what best can be done so that some assurance can be given to people who are affected," she said at the meeting with private banks, NBFCs and MFIs, and small finance banks.

In a relief to the crisis-hit Punjab & Maharashtra Cooperative (PMC) Bank customers, the Reserve Bank of India on Thursday increased the withdrawal limit from Rs 1,000 to Rs 10,000.

"Other terms and conditions of the said Directive shall remain unchanged. With the above relaxation, more than 60 per cent of the depositors of the Bank will be able to withdraw their entire account balance," the RBI said in a statement.

"The above relaxation has been granted with a view to reducing the hardship of the depositors. The Reserve Bank is closely monitoring the position and shall continue to take further steps as are necessary to safeguard the interest of the depositors of the bank," it said.

The RBI on Tuesday had barred the PMC Bank from carrying out almost all its routine banking activities for six months. It had allowed depositors to withdraw only Rs 1,000 from any of their accounts. The crackdown caused panic among depositors.

The move came after the central bank has found certain irregularities in the bank, including under-reporting of NPAs and had put restrictions on fresh lending.

Source: IANS