The PMC Bank Crisis ; Govt monitoring situation

Hours after the Reserve Bank of India extended the withdrawal limit of depositors from Rs 1,000 in six months to Rs 10,000 of the total balance held in every savings bank account in Punjab and Maharashtra Cooperative (PMC) Bank, Union Finance Minister Nirmala Sitharaman stated that the RBI is currently monitoring the issue of PMC Bank. She even opined that the Union government is also concerned and working to ensure some assurance given to people who are affected.

Answering a question on the sidelines of a press conference in New Delhi on Thursday, the Union Finance Minister said, "At this stage, RBI is handling it. Let there a comprehensive picture emerge, post that the govt will have to see what best can be done so that there is some assurance given to people who are affected." PMC Bank Suspends MD Joy Thomas Indefinitely, RBI Exceeds Depositors Withdrawal Limit to Rs 10,000 in 6 Months.

Earlier, in the day, Reserve Bank of India decided to allow the depositors to withdraw a sum not exceeding Rs 10,000 of the total balance held in every savings bank account or current account or any other deposit account. The decision comes after depositors staged protest against the central bank which had imposed a restriction of withdrawal limit of Rs 1,000 in six months for the account holders in PMC bank.

Also, the PMC bank suspended Managing Director (MD) Joy Thomas indefinitely after his acceptance on national television that he allowed the managing director of HDIL Sarang Wadhawan to take a loan of Rs 100 crore in his personal capacity, which was declared as Non-Performing Asset. While Thomas rejected the amount of Rs 2,500 crore loan given to bankrupt real estate firm Housing Development and Infrastructure Limited (HDIL).