Business Standard

Lessons from PMC: Why govt is responsible for co-operative bank crises

At no time has it made customers aware of any additional risk in such banks, over scheduled commercial banks

PMC, PMC bank, PMC bank depositors, PMC bank crisis, PMC bank depositors protest

PMC Bank Account Holders Protest at Azad Maidan in Mumbai on Tuesday 22nd Oct, 2019. KAMLESH PEDNEKAR.

Debashis Basu
It is a month now that the Reserve Bank of India (RBI) has suspended the fraud-ridden normal functioning of the Punjab and Maharashtra Cooperative (PMC) Bank. The RBI has appointed an administrator who, with all due respect to his other skills, has not run a bank, far less a bank that has been hit by a massive fraud. His job, assisted by three others bankers, is not to find a solution, but follow procedure. If the past is any guide, this will turn PMC Bank into a zombie bank, neither living, nor dead.

I gather that some Rs 27 crore a
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Oct 27 2019 | 11:07 PM IST

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