The govt’s blatant discrimination has come to the fore once again when in five-days flat a solution for the beleaguered Laxmi Vilas Bank was found. And the depositors of PMC Bank, in whose name the Banking Regulation Act was tweaked recently but continue to suck their thumbs.
The President of the apex body of urban cooperative banks and credit societies Jyotindra Mehta has reacted strongly against the govt move, not so much for helping the LVB as for step-motherly treatment being mated out to the co-op banking sector.
It bears recall that the Union Cabinet approved the amalgamation of debt-ridden Lakshmi Vilas Bank (LVB) with the Singapore headquartered DBS Bank soon after the crisis hit the former.
In a message sent to Indian Cooperative, Mehta asked the govt of India “If the decision of LVB merger is taken in 5 days, why not PMC Bank? Interestingly, Mehta is close to the present dispensation and has met the Union Finance Minister on the PMC issue in the past.
Mehta also reminded the govt “the Honourable Finance Minister in the Parliament while presenting amendment in the BR Act had mentioned the case of PMC Bank and said that the govt is unable to help it due to the lack of enough powers to RBI”. What happened to the promise, asked Mehta.
If we compare the cases of PMC Bank and LVB Bank, within ten days the government as well as RBI showed eagerness and revived the LVB but almost one year has passed with its depositors running from pillar to post with no results for the PMC Bank. This shows the attitude of the government towards the cooperative banks.
The PMC depositors had cried foul when earlier the beleaguered Yes Bank was revived sooner than later. Then the RBI expressed its helplessness saying it doesn’t have powers to initiate actions like restructuring of capital and reconstruction of the bank, which it could do in the case of Yes Bank.
Now things have changed and the government has amended the Banking Regulation Act in the interest of depositors but still PMC bank’s depositors are not able to get their hard-earned money back.
After the Banking Regulations Act (Amendment) Bill 2019 was passed from both the houses, customers and depositors of PMC bank saw a ray of hope but two months have passed but no action has been initiated by the RBI for its revival.
