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<ul><li>Scam-hit PMC Bank's depositors from Delhi staged a protest outside the Reserve <keyword id="6355303" type="DOMAIN" weightage="20" keywordseo="bank-of-india">bank of India</keyword> to demand that their money be returned.</li><li>The bank has been put under restrictions by the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> after an alleged fraud came to light following which the deposit withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors.</li><li>Subsequently, it was raised to Rs 10,000 and to Rs 50,000 earlier this week by the RBI.</li></ul>Scam-hit PMC Bank's depositors from Delhi staged a protest outside the Reserve bank of India here on Monday to demand that their money be returned. They threatened to go on a hunger strike after March 2 if their money is not returned and their concerns not addressed. Hemant Kumar, who had come from Malviya Nagar, said, "These people will not understand till we carry out a Shaheen Bagh-like protest outside the RBI. If they do not listen to us, we will block the road outside the RBI." Tek Chand, who has an account with Tilak Nagar branch, said, "My wife is a kidney patient and she has to undergo dialysis thrice every month. What am I supposed to do? I have been left helpless due to the situation. it is our hard earned money." Another depositor, <keyword id="8827022" type="PERSON" weightage="20" keywordseo="tajinder-pal-singh-gujral">Tajinder Pal Singh Gujral</keyword>, a resident of Janakpuri, had deposited Rs 2.5 crore in the bank after he sold his house, a day before the bank shut down in September. "I had sold off my house and the payment from that deal had come into my account with the PMC bank. I had booked another house and given Rs 5 lakh as down payment and was supposed to pay for it from the PMC account. But, now, those Rs 5 lakh are also gone and this money is also stuck. I cannot buy a house or do anything for my business," he said. The bank has been put under restrictions by the RBI after an alleged fraud came to light following which the deposit withdrawal was initially capped at Rs 1,000, causing panic and distress among depositors. Subsequently, it was raised to Rs 10,000 and to Rs 50,000 earlier this week by the RBI. Punjab &amp; <keyword id="689622" type="COMPANY" weightage="20" keywordseo="Maharashtra-Cooperative-Bank">Maharashtra Cooperative Bank</keyword>, which is among the top-10 urban cooperative banks, was placed under an RBI administrator on September 23 for six months due to massive under-reporting of dud loans. The bank, over a long period of time, had given over Rs 6,500 crore in loans to HDIL, which is 73 per cent of its total advances, and which has turned sour with a shift in the fortunes of the now bankrupt company. Its total loans stand at Rs 8,880 crore and the deposits at over Rs 11,610 crore. There have been massive protests across city from the depositors following the RBI action. SLB DP HRS

Scam-hit PMC bank depositors are inspired by Shaheen Bhag protests

<ul><li><keyword id="1907998" type="ORGANIZATION" weightage="20" keywordseo="PMC-Bank">PMC Bank</keyword> is known to have lent to HDIL using over 20,000 bogus accounts. </li><li><keyword id="178285" type="COMPANY" weightage="20" keywordseo="Laxmi-Vilas-Bank">Laxmi Vilas Bank</keyword>’s directors are being investigated in a case of missing FDs. </li><li><keyword id="127124" type="CITY" weightage="20" keywordseo="DHFL">DHFL</keyword>’s senior citizen investors are left in the lurch as it is being investigated by police for underworld links. </li><li>Religare Finvest alleged that the former promoters— the SIngh brothers — have stripped the company of its assets. </li></ul>Those who choose not to remember 2019 as a year of slowdown can remember it as a year of banking failures. PMC Bank, a large <keyword id="174493" type="COMPANY" weightage="20" keywordseo="Commercial-Bank">commercial bank</keyword> with 1.6 million depositors fell this year, almost two decades after a co-operative bank called Krushi Bank went defunct. History repeated itself with heart aches and heart attacks to depositors. There is more to worry about as other banks might be in the throes of trouble as well. The banking regulator the Reserve Bank of India (RBI) admitted that ₹71,500 crore worth of bank <a href="https://economictimes.indiatimes.com/news/economy/finance/bank-fraud-touches-rs-71543-crore-in-2018-19-rbi-annual-report/articleshow/70895326.cms">frauds have been </a>detected in 2018-19. To remedy this situation, yesterday the Central Bureau of Investigation (CBI) started conducting raids across 11 states in the country yesterday, in hopes of recovering what banks had lost. Here are the troubles that rocked the banking sector this year.

Slowdown or not, these India’s banks and shadow banks are in trouble

New Delhi, May 19 () The Delhi High Court has directed the Centre and Ministry of Finance to disclose if it intends to infuse funds to render support to scam-hit Punjab and Maharashtra Cooperative (PMC) Bank. Justice Rajiv Shakdher, who conducted the hearing through video conferencing, asked the administrator of the bank to file a status report which shall indicate whether or not the sale of assets of the promoter-directors of HDIL has taken place. In case the sale of assets has taken place, the status report will also indicate the amount garnered and the assets sold, the high court said. Two directors -- Rakesh Wadhawan and his son Sarang Wadhawan -- of Housing Development and Infrastructure Ltd (HDIL) were earlier arrested in the PMC bank scam case. In September last year, the Reserve Bank of India (RBI) had imposed restrictions on PMC Bank and also superseded the board and management of the bank and appointed an ex-RBI official as the administrator. An argument was raised by the petitioner that, recently, the Centre had infused funds in a scam-hit private bank, Yes Bank. The high court was hearing a plea by Sandeep Bhalla seeking direction to the RBI to issue a statement on timelines and safety of deposits held by the depositors with the PMC Bank and to ensure payments are made to depositors in full along with interest. The plea also sought direction to the RBI to allow the petitioners and depositors particularly senior citizens to withdraw amounts up to the interest on their deposits to enable them to make their living. The plea was filed in a pending petition concerning the fate of the deposits made with the PMC Bank. The high court, in its order, said "The Union of India, Ministry of Finance, will file an affidavit indicating as to whether it intends infusing funds to render financial support to respondent no. 2 (PMC Bank). This direction has been issued in the context of an argument raised by petitioner no.1 that, recently, respondent no.3 (Centre) had infused funds in a private bank, that is, Yes Bank." The high court also said that the administrator's status report will also give the details of the HCIL promotors' assets which have not been sold. "The market value and the realisable value will be set out in the status report. Status report will indicate as to the steps taken for the sale of these assets," it said, adding that the report be filed within four weeks and listed the matter for further hearing on June 25. SKV HMP RKS RKS RKS

HC asks Centre if it intends to infuse funds to support scam-hit PMC Bank

(Eds: Adding details) New Delhi, Mar 3 () A bill to provide more powers to the RBI for regulating cooperative banks was introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday.The Banking Regulation (Amendment) Bill, 2020, which comes in the backdrop of PMC Bank scam, seeks to strengthen cooperative banks by increasing professionalism, enabling access to capital, improving governance and ensuring sound banking through the RBI.Introducing the bill, Sitharaman said it is the "need of the hour" to avoid a PMC Bank-like crisis in the future.Noting that the happenings at the PMC Bank had "unfortunately" put a lot of small depositors in difficulty, she said there were demands that the government should do something about it.The Bill was introduced in the Lok Sabha amid the din, with Sitharaman saying that if the opposition wants to deny the small depositors their rights then "it is a shame". It could not be cleared because of the ongoing ruckus in the House over the issue of violence in Delhi.The proposed law seeks to enforce banking regulation guidelines of the RBI in cooperative banks, while administrative issues will still be guided by the Registrar of Cooperative.It also proposed to bring cooperative banks on par with developments in the banking sector through better management and proper regulation of cooperative banks with a view to ensure that affairs of cooperative banks are conducted in a manner that protects the interest of depositors, it said."Keeping in view developments in the banking sector and regulation thereof overtime, it has become necessary to strengthen provisions of the said Act as applicable to cooperative banks," said the Statement of Objects and Reasons of the Bill.In her Budget speech, Sitharaman had said that to strengthen cooperative banks, amendments would be brought in the Banking Regulation Act for increasing professionalism, enabling access to capital and improving governance and oversight for sound banking through the RBI.The decision assumes significance in the wake of a scam in the Punjab and Maharashtra Cooperative (PMC) Bank affecting lakhs of customers who have been facing difficulty in withdrawing their money due to restrictions imposed by the RBI.The PMC Bank was found to have given over Rs 6,700 crore loan to a single realty company HDIL through alleged fraudulent means and also hid the stress from the RBI by creating separate books of accounts.There are 1,540 cooperative banks with depositor base of 8.60 crore having total savings of about Rs 5 lakh crore. JD CSBAL

Bill to give more powers to RBI to regulate cooperative banks introduced in LS

<ul><li>Nirmala Sitharaman increased the guarantee that the government offers depositors as banks fail – from ₹1 lakh to ₹5 lakh. </li><li>This is the first time in 59 years that the government moved to increase <keyword id="1127487" type="ORGANIZATION" weightage="20" keywordseo="Deposit-Insurance">deposit insurance</keyword>, after 1961. </li><li>The Deposit Insurance and Credit Guarantee Corporation received<a href="https://www.businessinsider.in/business/news/deposit-insurance-corporation-sees-rs-14100-cr-claims-amid-pmc-crisis/articleshow/73016977.cms"> total claims of</a> ₹14,100 crore. </li></ul>After <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/the-collapse-of-pmc-exposes-the-fault-lines-in-the-financial-system-/articleshow/71402139.cms">the PMC bank crisis </a>resulted in deaths and suicides of depositors, a lot of customers have been on the edge. The Finance Minister Nirmala Sitharaman today increased the guarantee that the government offers depositors as banks fail – from ₹1 lakh to ₹5 lakh. “A robust mechanism is in place to monitor the health of all banks and the money of depositors are safe,” Sitharaman said in her Budget speech. This is the first time in 59 years that the government moved to increase deposit insurance, after 1961. The five-fold increase is much higher than the market expectations of doubling deposit insurance offered by the government. A deposit insurance scheme is the government’s way of compensating small depositors. The rest of the money will have to be forfeited by the depositors in case a bank shutters down like in the case of PMC Bank, leaving thousands of customers in dire straits. "Bank depositors get a shot in the arm with the upward revision in deposit insurance cover. While this could mean some expenditure for the Bank, this would certainly give comfort to retail savers," said R K Gurumurthy, head of treasury at Lakhsmi Vilas Bank. Last month, the Deposit Insurance and Credit Guarantee Corporation received<a href="https://www.businessinsider.in/business/news/deposit-insurance-corporation-sees-rs-14100-cr-claims-amid-pmc-crisis/articleshow/73016977.cms"> total claims of</a> ₹14,100 crore after the PMC bank scam. Bank frauds had remained dormant for decades: RBI After the scam, millions of customers across all co-operative banks have been worried as panic spread. This was compounded by the fact that the Reserve Bank also sounded an alarm in its financial stability report on the number<a href="https://www.businessinsider.in/policy/economy/news/rbi-financial-stability-report-finds-billions-lost-in-bank-fraud-this-year/articleshow/72998905.cms"> of bank frauds</a>. In the first six months of FY20, as many as ₹2.6 lakh crore worth bank frauds were unearthed by the banking regulator. The report also said that some of these schemes have remained hidden from 2000-01 which was the time that the first dotcom bust occurred. All this and the fall of large financial institutions like IL&amp;FS and DHFL, exposed the many loopholes in the banking system. However, the government chose to expand its own guarantee of these troubled banks instead of taking penal action on the management of these institutions.

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Scam-hit PMC bank depositors are inspired by Shaheen Bhag protests

PTI

Slowdown or not, these India’s banks and shadow banks are in trouble

Katya Naidu

HC asks Centre if it intends to infuse funds to support scam-hit PMC Bank

PTI

Bill to give more powers to RBI to regulate cooperative banks introduced in LS

PTI

India Budget 2020: Bank scam victims are assured of ₹5 lakh instead of ₹1 lakh

Katya Naidu

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