Will speak to RBI governor on urgency, distress of PMC Bank depositors: Sitharaman

NEW DELHI: Union finance minister Nirmala Sitharaman on Thursday held a meeting with depositors of Punjab and Maharashtra Cooperative (PMC) Bank and stated that the Reserve Bank of India (RBI) is taking action against the crisis-hit lender's management. "I've told depositors that the RBI is looking into the matter," she said.
The depositors had gathered outside the BJP's office in Mumbai.
Addressing the media after the meeting with depositors, Sitharaman mentioned, "The finance ministry may have nothing to do with it (PMC Bank issue) directly because RBI is the regulator of cooperative banks. But, I've asked the secretaries of my ministry to work with the rural development ministry and urban development ministry to study in detail as to what is happening. Representatives of RBI will also be there to understand shortcomings."

Sitharaman added that she will speak to RBI governor Shaktikanta Das on urgency and distress of PMC Bank depositors.
The finance minister also stated that more ways to empower the central bank better are under consideration.
The PMC Bank was put under "directions" by the RBI last month due to weak financial health, wherein the central bank has capped the deposit withdrawals at Rs 25,000.
The lender is in bad health allegedly due to its exposure to the near bankrupt realty player HDIL (Housing Development and Infrastructure Ltd), to which it has loaned over 70 per cent of its Rs 9,000 crore in advances.