The introduction of the ‘Banking Regulation (Amendment) Bill 2020’ in the Lok Sabha on Monday has raised hopes among anguished depositors from the Punjab & Maharashtra Co-operative (PMC) Bank that the end of their troubles may be in sight. .
The previous ‘Banking Regulation Bill (Amendment) 2020’ (No. 56 of 2020), presented in March 2020, has been withdrawn and a new Bill (No. 114 of 2020) has been introduced.
In June 2020, President Ram Nath Kovind enacted the Banking Regulation Ordinance (Amendment) 2020, to ensure better management and strong regulation of cooperative banks; and facilitate the development of a reconstruction / merger plan in the interest of depositors.
Since the bank was subjected to instructions as of the close of business on September 23, 2019, the withdrawal of deposits is limited to ₹ 1 lakh per depositor.
Due to the withdrawal limit, depositors, especially older people, are experiencing immense difficulties as they used to rely on interest income to cover monthly expenses. So far, nearly 60 PMC Bank depositors have lost their lives.
Depositors even took to the streets of the city, amid the raging pandemic, to draw the attention of stakeholders, including the Reserve Bank of India, to their plight.
Chander Purswani, President of PMC Depositors Forum, said: “Our tireless campaign over the last year to get our money back appears to be paying off. We hope that a quick solution to the PMC Bank problem will be found. “
The Reserve Bank, on June 19, said it had been engaging with stakeholders to explore the possibility of a bank resolution. However, the process has been affected due to the lockdown caused by Covid and the continued uncertainty surrounding the pandemic, he added.
“In addition, the extent of the bank’s negative net worth and the legal processes involved in bad debt recovery also pose challenges / limitations in the bank’s resolution.
“However, consultation with various stakeholders and authorities for the bank’s resolution continues. Therefore, it is considered necessary to extend the aforementioned guidelines for an additional period of six months (until December 22) to carry out the process, ”said the central bank.
