Govt to ensure that people do not face problem: Thakur on PMC Bank crisis

A day after the RBI slapped restrictions on Punjab & Maharashtra Co-operative Bank (PMC Bank) citing regulatory lapses, Union minister Anurag Singh Thakur on Wednesday said the government will ensure that customers of the bank do not face any problem.

The central bank on Tuesday put a slew of restrictions on the Mumbai-based lender, creating panic among thousands of depositors.

Major restrictions include capping withdrawal at Rs 1,000 per customer during the six-month period, and banning the bank from extending new loans. The lender has around Rs 11,000 crore of public deposits.

"Representations have been made by customers and some others to the finance ministry. We will look into those matters and update you," he told reporters.

"Compliance is must in case of institutions dealing with public money. Compliance has to be ensured...we will ensure that the common man should not face any problem," Thakur said.

Meanwhile, Punjab National Bank clarified that PMC Bank has no connection with it.

"PNB continues to enjoy the confidence of its customers and all stakeholders across the board. The bank maintains a healthy financial system," PNB said in a statement.

Speaking at an Assocham event here, Thakur said Gold Monetisation Scheme (GMS) has not achieved the desired target and it needs a revamp.

"The country has one of the highest saving rates in the world, estimated at around 30 per cent of total income. ?GMS has huge potential and can achieve great success by effectively tapping into the domestically-held gold by households and temple/trusts," the Minister of State for Finance said.

Banks can engage with state endowment departments to encourage greater participation of religious institutions in GMS, he said.

Thakur also said he along with the Union Finance Minister has travelled across India and have told income tax officials to respect the wealth creators of the country.

Tax officials have been told that do not suspect all, respect honest tax payers and do not hassle them, he said.