Shiv Sena MPs meet RBI Governor amid PMC bank crisis

A delegation of Shiv Sena MPs on Tuesday met RBI Governor Shaktikanta Das requesting him to redress issues related to the PMC bank customers.

Party MPs Arvind Sawant, Gajanan Kirtikar, Anil Desai and Rahul Shewale also wrote a letter and suggested some actions.

The party said that the RBI should consider merging PMC with one of the large public sector or private sector banks.

In the letter to Das, Shiv Sena said: "You may consider requesting the state and central government for the recapitalisation of the bank. You may also consider increasing the insurance cover from Rs 1 lakh to Rs. five lakh as an additional measure."

Last month, the RBI restricted the activities of the PMC Bank for six months and asked it to not grant or renew any loans and advances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits.

PMC Bank is a multi-state scheduled urban cooperative bank with operations in Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Pradesh, and Madhya Pradesh. With a network of 137 branches, it ranks among the top 10 cooperative banks in the country.

Earlier this week, a Mumbai court sent former Punjab and Maharashtra Co-operative (PMC) chairman Waryam Singh and HDIL promoters Rakesh Wadhawan and Sarang Wadhawan to the police custody in alleged connection with the bank fraud case.

The Esplanade court in Mumbai remanded the trio to police custody till 16th October.

According to the police, PMC bank officials gave loans to HDIL between 2008 and 2019 despite no repayment of the previous loans.