PMC Bank Crisis: Protest outside BJP office, Sitharaman says will talk to RBI

Sitharaman met with the aggrieved customer of PMC bank

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The customers of crisis-hit Punjab and Maharashtra Co-operative (PMC) Bank on have been protesting against the bank for quite some time now. Today, October 10, they even protested outside the Bharatiya Janata Party's office in Nariman Point, Mumbai. They even demanded the government to return their money.

The reason why they protested in front of Bharatiya Janata Party’s Nariman Point office was that Nirmala Sitharaman was in Mumbai. ShePMC Bank Crisis: Protest outside BJP office, Sitharaman says will talk to RBI

Sitharaman addressing a press briefing said that even though the Finance Ministry is not involved in this case in anyways but she has asked the ministry to work with Rural Development Ministry & Urban Development Ministry to study in detail as to what is happening.

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 25,000 per account holder.

It is being said that the major cause of this crisis is the exposure that the bank had to bankrupt Housing Development and Infrastructure Limited (HDIL). The total exposure to the sick real estate company is being pegged over Rs 6,500 crore, which translates to 73 per cent of its total assets worth.

On Oct 3, HDIL promoters Rakesh Wadhawan and Sarang Wadhawan were arrested by Mumbai police.  

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