FM faces angry PMC depositors; says will amend laws if needed

Finance Minister Nirmala Sitharaman, who faced angry depositors of scam-hit PMC Bank here on Thursday, announced setting up of a panel to recommend legislative changes to ensure better governance at co-operative banks.

If necessary, the government will amend the laws governing cooperative banks in the winter session of Parliament, she said at a press conference.

After a Rs 4,500-crore scam came to light at Punjab & Maharashtra Cooperative Bank, the Reserve Bank, which put curbs on withdrawal of funds from the bank, had also said that it would examine if the regulatory framework needed tweaks.

Sitharaman said a committee of secretaries of Economic Affairs and Financial Services, Rural Affairs and Urban Development ministries and a deputy governor of the RBI would be formed.

Through this committee, the government intends to "understand and take necessary legislative steps to prevent such things from happening in the future, empower the regulator better," she said.

Stating that she is not presuming that there are shortcomings in the present laws, the minister said the panel will study the issue and "if necessary, in the forthcoming winter session of Parliament itself, we will be bringing in any amendments which may be necessitated."
Meanwhile, to a question on whether the government accepts there is an economic slowdown, the finance minister evaded a direct reply, and said, "We are giving relief to all sectors who need help."