PMC Bank crisis: RBI wanted to sack bank’s chairman a year ago

The RBI regulator had got a whiff of his involvement in sanctioning loans to realty developer HDIL and related-entities without proper due diligence and much above the regulatory limits

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The Punjab and Maharashtra Co-operative (PMC) Bank is under the scanner of RBI for irregularities. It is noteworthy that, even a year ago, RBI had reportedly recommended removal of PMC’s chairman Waryam Singh. This was done after the regulator had got a whiff of his involvement in sanctioning loans to realty developer HDIL and related-entities without proper due diligence and much above the regulatory limits.

Also Read: PMC Bank Crisis: Exposure To HDIL More Than 73%

However, Waryam Singh continued to remain the chairman until a little time ago. As per recent reports, PMC’s exposure to bankrupt HDIL is over Rs 6,500 crore. This translates to 73 per cent of its total assets.

Also Read: What’s In Store For PMC Bank’s Customers?

The crisis in PMC bank was first exposed on September 23, when RBI directed it to shut down its operations. In addition, a withdrawal limit of ₹1000 per customer which has been imposed. This was later increased to Rs 10,000 per account holder for a period of six months. However, most people who went to ATMs to withdraw complained that there was no money being dispensed.

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