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On the PMC crisis, Nirmali Sitharaman called for a poisonous tweet



"Multi-state cooperative institutions are not subject to the Ministry of Finance," said Nirmala Sitharaman

New Delhi:

Finance Minister Nirmala Sitharaman on Monday tried to reassure a Twitter user who said that "people are obliged to consume poison" when they were hit by shocks after major financial crises in Punjab and Maharashtra (PMC) bank.

Reserve Bank of India (RBI) On September 23, imposed restrictions on PMC Bank, citing, inter alia, "serious financial irregularities, internal control and system failures". Initially, the withdrawal limit per client was set at 1000 Rs, which was later raised to 10,000 Rs.

To explicitly send this message, Ms. Sitharaman wrote on Twitter on Monday: "In the case of the cooperative bank Punjab and Maharashtra, a press release via depositors @PIB_India can access the pmcbank.com website for any complaints and call toll free 1800223993 to obtain inquiries. "

Twitter user Rakesh Bhat replied to the finance minister on the same subject. "Madam, there is nothing new about this. We expect a quick solution. There are many ways to deal with the crisis, and GOI and RBI least expect it. Take this as a challenge and help, otherwise people will have to eat the poison and die … "Mr. Bhatt wrote on Twitter, who on his profile page claims to be" a social activist. "

The Minister of Finance, apparently concerned about the tweet, replied to Mr. Bhat: "I appeal to you not to mention / write / write about such extreme matters. Multinational cooperative institutions are not subject to the Ministry of Finance, even if they are called banks. @ RBI is their regulator and they take action. "

The furious owners of PMC demanded immediate government intervention to ensure the security of their deposits.

The PMC crisis came to light after it suffered large losses due to loans taken out. Police in Mumbai submitted the first information report against promoters of Housing Development and Infrastructure Ltd (HDIL) – Sarang Wadhawan and Rakesh Kumar Wadhawan – and former managing director of PMC Joseph Thomas, for alleged collusion to deceive the bank to 4300 Rorsów crore, press agency Press India announced on Monday.

PMC did not mention the insolvency of the loan by HDIL in its annual report and continued to grant loans even though the company was admitted because of insolvency. PMC's exposure to HDIL accounts for nearly 73 percent of the total R 8,880 crore loan portfolio as of September 19, PTI said it is nameless.

Although HDIL does not repay, bank officials did not classify loans as non-performing advances and deliberately concealed information from the RBI, police said in a statement.

The depositors of cooperative banks are in a relatively high risk zone, since the supervision and administration of these entities is subject to state governments and the central bank. The central bank cannot take any action against banks unilaterally, but it can suggest to the government a plan that has the highest authority deciding whether the bank should continue or close.

With PTI entries

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