Assurance from Finance Minister, Will Look Into PMC Fraud Case

Nirmala Sitharaman to address press conference at BJP Office, Mumbai, on Wednesday to discuss about the malfunction in banking sector  following PMC Scam and protest against the withdrawal limit of the respective bank with RBI Governor.


FM Nirmala Sitharaman on PMC Bank scam.


Indian Bank System not being at its best, as the numbers of scams are adding up and the most recent, in talks, is the Punjab & Maharashtra Cooperative (PMC) Bank fraud . To discuss this, the Finance Minister, Nirmala Sitharaman reached Mumbai to address her press conference in BJP office regarding the distress of depositors that she witnessed before entering the venue (BJP office) for press conference to speak with the Reserve Bank of India (RBI) governor this evening.


As the customers protested outside the BJP office, Sitharaman said,” I will once again talk to the Governor of Reserve Bank this evening to convey the distress of PMC clients. I’ve asked the secretaries of the ministry to study in detail as to what is happening. Representatives of the RBI will also be there to understand shortcomings, what happened and also to therefore, if necessary, look at the ways in which the respective acts will have to be amended,” the Finance Minister added.

The protest mostly led with banners reading “No Bail, Only Jail”, as the RBI did not take any action against the officials at fault and demanded Prime Minister’s involvement in the matter. Also, the strikers were discontented with the revised limit on withdrawals that was rupees 25,000 by RBI.


The youngest Scheduled Bank of the country and its fraud case involves amount rupees 4,355 Cr. The crux of this fraud case is the huge loan given to the Housing Development and Infrastructure Ltd (HDIL) by PMC management. Transfer of 70% of the total credit facilities were done, with bank’s Non-Performing Assets (NPA) rising to 73%. The HDIL promoters were allowed to operate password protected masked accounts and around 21,049 bank accounts were opened by bogus names to hide 44 loan accounts.


When questioned on country’s troubled banking sector, The Finance Minister said,” I have asked the banking and economic affairs secretary to sit with the ministries which register the multi-state cooperatives and study the shortcomings in the functioning of multi-state cooperatives which also run banks.”


The major culprit for this ruckus, HDIL group and HDIL Chief Rakesh Wadhawan and his son Sarang Wadhawan have been arrested in money laundering case and carried out raids in six places and assets worth rupees 3,500 Cr. was ceased by the Enforcement Directorate.

Sitharaman was witnessed saying that she will talk about the PMC fraud case and about the withdrawal limits with the RBI Governor. And with many opinions rising from the protesters, most of them focused on how politics should not intervene with sectors like banking that has a big impact on the mass.