The finance minister promised to bring in legislative changes for upholding of their interests
Finance Minister Nirmala Sitharaman on October 10 faced irate depositors of Punjab and Maharashtra Co-operative (PMC) Bank.
The depositors had gathered outside the Bharatiya Janata Party (BJP)'s office in Mumbai, Maharashtra ahead of Sitharaman's scheduled press interaction regarding the Maharashtra Assembly elections. Maharashtra will head for polls on October 21.
The finance minister promised to bring in legislative changes for upholding of their interests. She also told the irate depositors that the Reserve Bank of India (RBI) is looking into the matter.
The PMC Bank was put under "directions" by the RBI in September due to weak financial health, wherein the central bank has capped the deposit withdrawals at Rs 25,000.
The bank is in bad health allegedly due to its exposure to the near bankrupt realty player HDIL, to which it has loaned over 70 percent of its Rs 9,000 crore in advances.
At the press interaction, Sitharaman said secretaries from the department of financial services and economic affairs will be meeting a deputy governor of RBI soon to look into the "shortcomings" of the functioning of multi-state cooperative banks and see if any amendments can be made to the laws.
"They will discuss legislative steps needed to prevent such incidents from happening and empower the regulator better," Sitharaman said.
The BJP-led government will bring in a legislation to this effect in the winter session of Parliament, she said.
The minister said she will speak to RBI Governor Shaktikanta Das about the interest of the depositors and convey their urgency and distress.(With inputs from PTI)The Great Diwali Discount!
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