PMC Bank Wants Credit and Housing Societies to Lock-In Deposits for 3 Years
Moneylife Digital Team 15 November 2019
The management of fraud-hit Punjab and Maharashtra Cooperative Bank (PMC Bank) is seeking consent from credit societies, cooperative housing societies (CHS) and other institutions from the cooperative sector that they will not withdraw their bank deposits for next three years. This follows a similar undertaking sought from its own staff, which has accounts with the bank. 
 
Asking all branches to ensure compliance with its directive, the PMC Bank management says, "...the branches are advised to approach such customers (cooperative institutions) with a request to give their consent to keep the deposits during the next three years so that the Bank can approach the Reserve Bank of India (RBI) to remove the restrictions."
 
The communication sent from PMC Bank's central office to all branches mentions about a meeting between the administrator and representatives of credit societies and federations. "In the event the Bank starts normal operations, the Bank may face liquidity crunch and hence, in order to overcome such situations, the representatives agreed that the cooperative credit societies, housing societies and the banks that have substantial deposits with PMC Bank will not withdraw the deposits during the next three years..," it says.
 
 
The PMC Bank management has also made it clear that this consent should be voluntary. The branches are asked to verify signatures on the consent letter and send it to the central office for further processing. 
 
Sources say, if the proposal from the bank has come about after a discussion with the Reserve Bank of India (RBI) then the two RBI employee societies, which have over Rs200 crore with the bank, may also be asked to lock-in their deposits in PMC Bank. 
 
It would be interesting to see if any of these developments are part of the RBI’s response to the Bombay High Court in the affidavit it was asked to file in response to several writ petitions and public interest litigation (PIL) with regard to the PMC Bank issue. The next date of hearing is 19th November. 
 
Few days ago, Moneylife wrote on how PMC Bank is asking its staff depositors to give a declaration that they will not withdraw their personal deposits with the bank for a period of three years, even if restrictions on withdrawal are lifted by the regulator. (Read: PMC Bank Fraud: Management Seeks Undertaking from Staff that They Will Not Withdraw Deposits for 3 Years
 
PMC Bank has been put under restrictions by the RBI since September after an alleged Rs4,355 crore scam came to light, following which the deposit withdrawal was initially capped at Rs1,000, causing panic and distress among depositors. The withdrawal limit has been raised in a staggered manner to Rs50,000.
 
Founded in 1984 by S Gurcharan Singh Kochhar, in a small room in Mumbai, the bank had now grown to a network of 137 branches in six states and ranked among the top 10 cooperative banks in the country.
 
 
Comments
Nagaraju Bommanahalli
6 years ago
I will ask both both parties please reply ,how much money recovered till today by selling assets of fraud persons who taken huge fraud loans,how much money returned to the bankrupted bank account holders , don't do drama,my friend lost several lakhs from Alpic finance a NBFC in twenty five years back, but till today he have not received single paise , this Alpic finance company is a subsidiary of Cipla group, this NBFC done huge fraud,but till today no action taken, these companies go to court and take stay order for the sale of theirs assets, Court will drag the case to twenty to thirty years at that time all investers will die, these fraudessters enjoy our loot money with political leaders, these are all drama nothing will happen only poor will die , why not Auditors arrested who have been submitting manuplated Audit reports by fabricating balance sheets. Even concerned officials from RBI are also equally liable for this situation. We need to initiate proper legal steps to compel RBI to immediately resume normal operations of Bank.In past history no business man who had taken huge fraud loans are not punished by court,ask these RBI give the list of who had punishment for such crime in India, nothing only poor people are finished from these fruduster, former finance minister chidambaram who had made banks to give loans by phone calls is getting bail after bail from all courts ,his son has thousand crores money in foreign country, these money has gave by Vijay malya like business men for getting fraud loans,no hope for our India , UPA gave 70%fraud loans , NDA has gave 30%fraud loans,one is 840and another is420, this is only difference, both parties taking India to bankruptcy,no hope for common people
In India nobody knows how Indian companies are doing fraud from the beginning to last ,for example a big business men will start the company in India as below .His companies actual value is Rs2000crores but with the help of the auditors,Banks,and chartered accountants he made his company s values to RS 6000 crores by book adjustment with bribe and he call IPO that is in share market and collect Rs10000 crores in share market, first he pumped 60%of money to foreign country in the name of business and will deposit most of the money in his name next he will file bankruptcy due to losses and will write off all the loans this is the business doing in India ED is doing drama ICICI Bank chandakochar is well known to all she done huge fraud in ICICI Bank, this drama of enquire is doing from past one year, but still she is not arrested, reasons In this icici bank scam all SEBI auditors ED RBI central government rating agencies big leaders of all parties involved.central government making all efforts to avoid arrest these fellows,if arrested all all foreign country become knows most of the Indian companies running on bogus and take away all foreign investment,then India become bankruptcy.This is well known by central government hence avoiding all efforts to arrest directors of icici bank chandakochar DHFL jetairways Videocon kingfisher airline PNB bank head il@fs etc .even Vijaymalya kingfisher airline companies don't have single plane in his companies name but all banks gave Rs10000 crores money, same type loans gave to jet airways,DLF, Devan housing finance company,il@,fs,etc wait in few months most of the common people investment in icici bank NBFC PSU banks equity NCD mutul funds become Zero,All parties RBI officers, SEBI, etc are corrupt they are taking India towards bankruptcy.
valentine barboza
6 years ago
Get the prime minister to answer the depositors of pmc bank issue... He is answerable!! The finance minister has washed her hands off by passing the buck.. plsFilé multiple cases Against the RBI for not doing it’s job.. all political parties are corrupt to the core.. all we will have is 1000 feet statues of all gods and political goons.. . but no money to buy food .. this is the fate of us poor Indians .. Vijay Mallya, Neerav Modi , Mehul Choksi!!! How many shahs and Modi’s will it take to kill us slowly? Why are these political thugs screwing the common man... ? Let’s say Jai sure ram...
valentine barboza
6 years ago
RBI is responsible for this mess. Pls do not lock in ur deposits for 3 years.. this country and its systems are gone to dogs.. soon you shall see how many banks are going to close down.. look at DHFL.. over .. 20 thousand crores and no accountability.. this government is cheating us.. pls read money life and money control.. cobra... they are revealing the truth.. all other media is sold off.. do u c pmc bank news as often u used to c? No!! They r screwing the common man..
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