RBI likely to ready scheme for PMC bank revival, rearrangement by Jan-end

RBI likely to ready scheme for PMC bank revival by Jan-end 1
The RBI is waiting on three crucial reports following which it will start working on a revival or rearrangement scheme for reviving the troubled PMC bank, BJP leader Kirit Somaiya said

Almost three months after imposing restrictions on scam-hit Punjab & Maharashtra Cooperative (PMC) Bank, the RBI assured a delegation of BJP leaders that the rearrangement of scheme for the revival of the troubled bank will be ready by January-end.

The matter was discussed during a meeting on Tuesday between a delegation of BJP leaders, including Kirit Somaiya, Gopal Shetty, Pravin Darekar, Atul Bhatkalkar, Amit Satam, Mihir Kotecha and Mahesh Baldi, and RBI Governor Shaktikanta Das.

During the 45-minute meeting, the leaders discussed the possibility of reviving or merging the bank.

“The RBI told us that three reports are expected in the coming four weeks. The officials said and they will be able to decide on the issue in a better way about the rearrangement of scheme for PMC Bank revival after that,” said former BJP MP Kirit Somaiya.

The three reports which under discussion were Enforcement Directorate’s conclusion about alleged benami properties of Housing Development and Infrastructure Ltd (HDIL), a forensic audit report by the auditors appointed by the new administration of PMC, and verification of documents provided by HDIL while mortgaging the property to take loans from PMC.

The BJP leaders also urged the central bank to increase the withdrawal limit up to Rs 70,000 (from the current Rs 50,000) and look into the possibility of PMC’s merger with another bank.

Back in September, RBI had restricted PMC bank’s activities for six months and sacked the board of directors on account of major financial irregularities, failure of internal control and systems of the bank, and wrong or under-reporting of its exposures.

The restrictions on withdrawals left lakhs of PMC depositors distressed. However, over the last three months, the RBI has gradually hiked the withdrawal limit from the initial Rs 1,000 to Rs 50,000, allowing over 70 percent depositors to empty their accounts.

According to investigating agencies, HDIL promoters Rakesh Wadhawan and Sarang Wadhawan, along with PMC ex-chairman Waryam Singh allegedly siphoned funds from the bank by using overdraft facilities and disguised them as loans.

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