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Will make amendments if they help in better regulation: FM

By IANS | Published: October 10, 2019 2:22 PM

Facing flak from several quarters on the PMC Bank fraud case, Finance Minister Nirmala Sitharaman on Thursday said that if amendments help in better regulation, the Centre would go ahead with the required legislative procedure.

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Speaking to reporters at the BJP office here, Sitharaman said that she would meet the Reserve Bank of India (RBI) Governor this evening and convey the issues and urgency displayed by the PMC Bank customers.

The Minister met the customers of Punjab & Maharashtra Co-operative (PMC) Bank in Mumbai earlier in the day.

Sitharaman further said that she has asked secretaries of the concerned Ministry to study in detail the shortcomings and if necessary look at ways in which the respective Acts have to be amended. She said that in the meeting to be held to decide on amendments in Act for better regulation, along with representatives from the Finance Ministry a Deputy Governor level officer of the apex bank would also be present.

Sitharaman said that she has explained to the customers that the RBI is taking action, doing what should be done as per the law. She further told the media that in such instances where there is malpractice and boards get bypassed, the central bank handles the matter.

During the conversation with the PMC Bank depositors, the Finance Minister also informed them that the Finance Ministry is working with Rural Development Ministry.

The PMC Bank fraud came to light in late September, when the RBI barred the bank from carrying out the majority of its routine business transactions for a period of six months, sparking panic among the depositors and sending shock-waves in the city banking and business circles.

Days after fraud came to light, the now-suspended managing director of the bank Joy Thomas, in a letter to the RBI acknowledged the wrongdoing, and said the bank even opened a number of dummy accounts to replace the stressed accounts held by Wadhawans-led Housing Development and Infrastructure Limited (HDIL).

The Economic Offences Wing of Mumbai Police and the Enforcement Directorate (ED) are investigating the matter and have made few arrests and attached properties and assets so far.

( With inputs from IANS )

Tags: RBISitharamanThe Finance Ministry
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