PMC Bank Scam: FM Sitharaman Puts Onus On RBI Amid Demand For Justice

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Nirmala Sitharaman, who was forced to respond over the PMC Bank scam, stated that the cooperative banks are regulated by the RBI, and not the government.

Written By Aishwaria Sonavane | Mumbai | Updated On:

Nirmala Sitharaman, who was forced to respond over the PMC Bank scam, stated that the cooperative banks are regulated by the RBI, and not the government.  While stating that the Ministry of Finance is not directly involved, Sitharaman claimed that the government is doing what is needed. The Finance Minister further added that the Finance Ministry secretaries to work with ministries to comprehensively study the situation. 

Nirmala Sitharaman said, "Even as I came in, there were a few of badly affected customers of PMC Bank who were waiting to meet, so I called them inside and sat with them and spoke to them about their problems. One thing I want put before you, is that multi-state cooperative banks, which is what the PMC is, which are regulated by the RBI. Similarly, urban cooperative bank multi state are registered in the urban development ministry, but are regulated by the RBI. Therefore, in such instances where there is some malpractice, the RBI takes care of placing a resolution and handling the matter, which I have explained to the affected customers."  

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"The Ministry of Finance might not have anything to do with it directly, but the RBI is the regulator and they are doing what is to be done. By my side, I have asked the secretaries of my ministries, both of department of economic affairs and the banking secretary to work together with the Rural Development Ministry and Urban Development Ministry to make sure that multi state cooperatives, which also run banks. I've asked the secretaries of the ministry to study in detail as to what is happening, where were the shortcomings," Nirmala Sitharaman added.  

PMC Bank Fraud protests

Depositors of PMC Bank protested outside a court on Wednesday, demanding stringent action against the culprits, as police custody of three accused in Rs 4,355 crore scam at the bank was extended till October 14. The Esplanade magistrate's court granted the request of the Mumbai Police's Economic Offences Wing for further remand. Housing Development Infrastructure Ltd (HDIL) chairman and managing director Rakesh Wadhawan and his son Sarang were arrested in the case last Thursday, while former chairman of PMC Bank Waryam Singh was held on Saturday.

The trio were produced before Metropolitan Magistrate S G Shaikh as their custody ended on Wednesday. EOW officials said they needed to interrogate the accused further, so the court extended the remand till October 14.

Outside, customers of the bank, who are facing severe restrictions on withdrawal of funds since the dire situation of the bank came to light, staged a protest, demanding that there should be "only jail and no bail" for the accused. Some of them were carrying placards. "Arrest Wadhawans but release our funds, SOS Modiji," said one placard. "This scam is on you Mr Modi", said another, while a third one said "RBI is responsible for this mess, what is our fault".

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