The Reserve Bank of India is moving to fill the gaps which have come to light because of the Punjab and Maharashtra Cooperative (PMC) Bank fraud. PMC Bank, which has 137 branches and over Rs 11,000 crore in deposits, was put under restrictions after the RBI discovered financial irregularities in its books.

Addressing reporters at the North Block, RBI Governor, Shaktikanta Das, said that the PMC Bank situation is being looked at and that a forensic audit underway.

“PMC Bank situation is being closely monitored and a forensic audit underway. The RBI is providing inputs for changes needed in co-operative bank law,” he said.

Recently in a relief for the crisis-hit Punjab & Maharashtra Cooperative (PMC) Bank customers, the RBI increased the withdrawal limit from Rs 40,000 to Rs 50,000.

Punjab & Maharashtra Cooperative Bank, which is among the top 10 urban cooperative banks, was placed under an RBI administrator on September 23 for six months due to massive under-reporting of dud loans. The regulator also capped deposit withdrawals first at Rs 1,000 initially.

The Mumbai Police had earlier pegged the scam at nearly Rs 4,500 crore and has already made a slew of arrests in the case, including the promoters of realty company HDIL the Wadhwans, and also the bank's chief executive and managing director Joy Thomas and chairman Waryam Singh who are all behind the bars now.

The bank, over a long period of time, had given over Rs 6,500 crore in loans to HDIL, which is 73 percent of its total advances, and which has turned sour with a shift in the fortunes of the now-bankrupt company.

Its total loans stood at Rs 8,880 crore and the deposits at over Rs 11,610 crore. There have been massive protests across the city from the depositors following the RBI action.

(With PTI inputs)

First Published:Nov 7, 2019 3:20 PM IST